Gold holds steady above $1,800 ahead of Fed meeting

Gold prices were little changed on Wednesday following a rapid growth seen in the last session. Gold steadied as markets awaited the Federal Reserve interest-rate decision that would be announced later in the day. 

Bullion prices rose sharply on Tuesday after government data showed that US inflation eased in November. It points to the fact that price pressures in the US have reached record high.  

According to the recent data, the annual inflation rate came down to 7.1% in November, showing signs that the economy is cooling. This was triggered by tighter monetary policy, lower fuel prices, and slowing economic growth. 

Investors are currently focused on the Fed’s next move at the meeting, due today at 19:00 GMT. Analysts expect the Fed to deliver a 50-basis-point interest rate hike.

Investors will also keep a close eye on Fed Chair Jerome Powell's remarks following the meeting. They will be watching comments for clues about smaller interest rate hikes. Such signals could positively affect the precious metals market in the near-term.