LONDON (Reuters) - Gold prices slipped in Europe on Wednesday as the dollar firmed versus the euro, with caution ahead of the Federal Reserve announcement on monetary policy later in the day denting interest in assets seen as higher risk.
Spot gold was bid at $942.45 an ounce at 4:47 a.m. EDT, against $944.55 an ounce late in New York on Tuesday. U.S. gold futures for December delivery on the COMEX division of the New York Mercantile Exchange fell $2.80 to $944.80 an ounce.
"Gold is under pressure because of a stronger dollar," said Standard Bank analyst Walter de Wet. "Ahead of the meeting the market is unlikely to get itself too short because of the possibility of a surprise announcement of quantitative easing."
Such an announcement would be positive for gold, he said, but added: "If you look at the interest rate and equities markets it seems as if everybody expects no more quantitative easing by the Fed."
The Federal Open Market Committee will release its decision on rates and accompanying statement at 2:15 a.m. EDT.
The dollar rose against the euro and versus a basket of six major currencies on Wednesday ahead of the decision, as market participants pulled back from riskier assets.
Oil meanwhile steadied below $70 a barrel after four consecutive sessions of losses as the market awaited U.S. inventory data and the results of the Fed meeting.
On other markets, European shares declined in early trade as investors stuck to the sidelines ahead of the Fed. Asian markets sagged, with Shanghai stocks tumbling to a four-week low.
