Gold held just below $1,100 an ounce early on Wednesday, trading not far
from a 5-1/2-year low, as investors awaited the outcome of the U.S.
Federal Reserve's meeting for more clues on the timing of this year's
interest rate increase.
Spot gold was little changed at $1,095.25 an ounce by 0029 GMT. The metal hit a low of $1,077 last week, its weakest since February 2010.
Gold has been stuck in narrow ranges this week ahead of the conclusion of the Fed's policy meeting on Wednesday. Policymakers are expected to send more signals to the market that a U.S. interest rate hike is certain this year as the economy recovers.
That rate hike, the first in nearly a decade, could happen in September or December, analysts say, suggesting more downside risk for non-interest yielding gold.
U.S. gold for August delivery slipped 0.2 percent to $1,094 an ounce.
Global gold demand shrank to its lowest level since 2009 in the second quarter as China poured funds into its now troubled equities market and imports by India dropped to the lowest in five quarters, according to a report by GFMS.
China's gold imports could fall as much as 40 percent this year as demand for bullion used to back domestic financing deals decreases, the world's biggest refiner Valcambi said.
U.S. consumer confidence suffered its biggest blow in four years in July on a less upbeat jobs outlook, while home appreciation in major cities stalled in May, suggesting a spring pause in housing demand.
Spot gold was little changed at $1,095.25 an ounce by 0029 GMT. The metal hit a low of $1,077 last week, its weakest since February 2010.
Gold has been stuck in narrow ranges this week ahead of the conclusion of the Fed's policy meeting on Wednesday. Policymakers are expected to send more signals to the market that a U.S. interest rate hike is certain this year as the economy recovers.
That rate hike, the first in nearly a decade, could happen in September or December, analysts say, suggesting more downside risk for non-interest yielding gold.
U.S. gold for August delivery slipped 0.2 percent to $1,094 an ounce.
Global gold demand shrank to its lowest level since 2009 in the second quarter as China poured funds into its now troubled equities market and imports by India dropped to the lowest in five quarters, according to a report by GFMS.
China's gold imports could fall as much as 40 percent this year as demand for bullion used to back domestic financing deals decreases, the world's biggest refiner Valcambi said.
U.S. consumer confidence suffered its biggest blow in four years in July on a less upbeat jobs outlook, while home appreciation in major cities stalled in May, suggesting a spring pause in housing demand.
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