Gold pinned near key $1,800 level ahead of Fed policy decision

Spot gold was flat at $1,798.75 per ounce

  
Image used for illustrative purpose. Gold bars are seen before the refining process at AGR (African Gold Refinery) in Entebbe, Uganda, October 4, 2018.

Image used for illustrative purpose. Gold bars are seen before the refining process at AGR (African Gold Refinery) in Entebbe, Uganda, October 4, 2018.

REUTERS/Baz Ratner

Gold prices were flat on Wednesday, holding near the key psychological level of $1,800 per ounce, as investors await the U.S. Federal Reserve's meeting for hints on policy tapering plans.

FUNDAMENTALS

Spot gold was flat at $1,798.75 per ounce by 0106 GMT.

U.S. gold futures fell 0.1% to $1,798.20 per ounce.

Fed's policy statement is due at 1800 GMT later in the day followed by a news conference by Chairman Jerome Powell. Investors will look for cues on when the central bank will begin to taper its monetary support.

U.S. consumer confidence inched up to a 17-month high in July, with households' spending plans rising even as concerns about higher inflation lingered, suggesting the economy maintained its strong growth early in the third quarter.

The International Monetary Fund on Tuesday maintained its 6% global growth forecast for 2021, upgrading its outlook for the United States and other wealthy economies but cutting estimates for developing countries struggling with surging COVID-19 infections.

The U.S. dollar held steady below its 3-1/2-month peak scaled last week.

Silver was flat at $24.67 per ounce, having hit its lowest level in nearly four months at $24.46 on Tuesday.

Palladium fell 0.1% to $2,605.01 per ounce, while platinum rose 0.22% to $1,052.93.

DATA/EVENTS (GMT) 0600 UK Nationwide house price MM, YY July 1800 US Federal Open Market Committee announces its decision on interest rates followed by statement

(Reporting by Eileen Soreng in Bengaluru; editing by Vinay Dwivedi)

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