PRECIOUS-Gold steadies below $1,250/oz ahead of Fed meeting
LONDON, Dec 11 (Reuters) - Gold steadied below $1,250 an
ounce on Monday after its biggest weekly drop in more than six
months, with moves muted ahead of an expected interest rate hike
from the U.S. Federal Reserve this week.
Spot gold was at $1,247.48 an ounce at 1440 GMT,
little changed from late on Friday, while U.S. gold futures
for February delivery were up $1.30 an ounce at
$1,249.70. Spot prices fell 2.5 percent last week, their biggest
weekly drop since May.
The Fed is widely tipped to lift rates at its two-day policy
meeting ending Wednesday, but its accompanying statement will be
closely watched for any surprises.
The bank is expected to increase rates another two or three
times in 2018, but still-sluggish inflation and wage growth has
raised question marks over that view.
"The FOMC's policy statement, Fed Chair Yellen's final press
conference in charge, and the update to the summary of economic
projections will be closely parsed for signs the Fed's
longer-term intentions," Mitsubishi analyst Jonathan Butler