Gold was little changed on Wednesday as market activity remained largely subdued ahead of the US central bank's economic policy statement and a fast-approaching tariffs deadline, while palladium hovered near previous session's record high.
Spot gold gained 0.1% to $1,465.18 per ounce as of 0741 GMT. US gold futures were also up 0.1% at $1,469.50.
"The market is in a holding pattern. Stocks, oil, currencies and gold are awaiting the events that are coming in the second half of the week," said Jeffrey Halley, senior market analyst, Asia Pacific at OANDA.
The Federal Reserve will issue a statement on its December policy meeting later in the day. Although the central bank is expected to leave interest rates unchanged, investors are eager to hear its outlook for the economy, mainly hit by the US-China trade war.
"The Federal Open Market Committee (FOMC) will update the dot-plot, so that will be closely watched," Halley said.
"If they provide a more dovish outlook, that would potentially weaken the dollar, which will be positive for gold."
On the trade front, investors maintained a cautious stance as US President Donald Trump has to decide whether to impose tariffs on nearly $160 billion in Chinese consumer goods just weeks before Christmas.
On the technical front, signals are mixed for spot gold as it kept bouncing towards a resistance at $1,466 per ounce, according to Reuters technical analyst Wang Tao.
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