Gold struggled to break out of a tight range near a one-month low on Wednesday, as investors waited to hear the outlook for US interest rates from a Federal Reserve policy meeting that kicks off later in the session. Spot gold was little changed at $1,105.10 an ounce by 0629 GMT. Prices for the metal have been steady this week, following a drop to a one-month low of $1,098.35 the week before, with any big moves expected only after the Fed statement on Thursday.
Expectations the central bank will hike rates at the two-day policy meeting have eased recently due to concerns over slowing economic growth in China and volatility in financial markets, but bullion traders still remained cautious. "We could see some upside in (gold) prices if the Fed chooses to not raise rates," said a trader in Hong Kong. "But I doubt we will be able to hold onto the gains for long because the rate hike is going to come at some point this year."