Gold prices held steady on Wednesday ahead of the US Federal Reserve's monetary policy decision due later in the day and as investors awaited a stimulus package in the world's largest economy.

FUNDAMENTALS

Spot gold was little changed at $1,849.76 per ounce by 0031 GMT. US gold futures eased 0.1% to $1,848.60.

The Fed will announce the verdict of its two-day policy meeting on Wednesday and it is expected to stand pat on policy.

Democrats in the US Senate will move forward on US President Joe Biden's $1.9 trillion coronavirus relief plan without Republican support if necessary, Senate Democratic leader Chuck Schumer said on Tuesday.

The Biden administration will purchase 200 million more coronavirus vaccines and funnel more to states now, a senior administration official said on Tuesday.

The International Monetary Fund on Tuesday raised its forecast for global economic growth in 2021 and said the coronavirus-triggered downturn last year would be nearly a full percentage point less severe than expected.

US consumer confidence rose moderately in January while lingering concerns about the COVID-19 pandemic led to a further deterioration in households' perceptions of the labor market.

China's net gold imports via Hong Kong in December rose for a second straight month, although imports for the year plunged 85% as the coronavirus dealt a blow to consumption of the metal.

Holdings of the world's largest gold-backed exchange-traded fund, SPDR Gold Trust, fell 0.1% to 1,172.38 tonnes on Tuesday.

Silver was flat at $25.43 an ounce, platinum rose 0.1% to $1,099.68, and palladium gained 0.1% at $2,326.30.