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Gold prices were subdued on Tuesday and the dollar held steady as investors eyed a pivotal U.S. Federal Reserve policy meeting for clues on stimulus tapering and rates lift-off.

Spot gold slipped 0.1 percent to $1,792.09 per ounce, while U.S. gold futures were down 0.1 percent at $1,793.60.

The U.S. Federal Reserve, which concludes a two-day meeting on Wednesday, is expected to leave interest rates unchanged but could announce plans to begin scaling back its asset purchase program.

Markets will watch closely the Fed’s language on inflation and the timing of the first interest rate hike since December 2018.

With wages flashing inflation signals and economic growth facing mounting headwinds, the Fed may try to maintain a balance between containing inflation and giving the economy as much time as possible to restore the jobs lost since the pandemic.

The Bank of England’s meeting takes place on Thursday, with think-tanks divided on which way the rate decision would go.

Earlier today, the Reserve Bank of Australia kept the nation’s cash rate at the record low 0.1 percent for the 12th month in a row, but dumped one of its key stimulus measures, known as “yield curve control”, signaling that borrowing costs may have to rise sooner than expected.


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