SPOT gold was little changed in Asia yesterday before the end of the two-day Federal Open Market Committee meeting that will give an update on US monetary policy.
The Fed is set to leave interest rates unchanged, near zero, but the market will be on watch for any shift in monetary stance and stimulus policies after the last meeting in December.
The Fed's mortgage-buying program is scheduled to conclude at the end of March, and any extension to this date -- deemed unlikely at this stage -- would cause positive economic ripples through markets. The program is a major support to the housing market, and many market participants are concerned its end could undermine the recovery.
Risk appetite has been waning since the announcement of measures to tighten bank lending in China, as well as President Barack Obama's proposals to restrict proprietary trading and hedge funds run by US investment banks.
