Gold clung to small overnight gains on Tuesday but investors refrained from taking big positions in the metal as they waited for the start of a Federal Reserve policy meeting for clues on when the U.S. central bank could raise interest rates.
Spot gold was little changed at $1,233.20 an ounce by 0025 GMT. The metal hit an eight-month low of $1,225.30 in the previous session, before paring losses to close up 0.4 percent on weaker equities.
Investors are watching the Fed’s words closely for any clues on the timing of the first U.S. rate hike in more than eight years. Any hike in interest rates would dim the appeal of gold, a non-interest bearing asset.