Gold Steady Around $1195 Ahead of Fed

Gold firmed on Tuesday but remained near 5-1/2-year lows as markets braced for this week’s Federal Reserve meeting, at which policymakers are expected to give further clues on the timing of a U.S. rate increase.

The Fed suggested earlier this year that a near-term rate rise was on the cards if economic data supported such a move, but slowing growth in China and a drop in commodity prices have led some to question whether it will be pushed back.

Spot gold was up 0.04 percent at $1,094.51 an ounce, not far from Friday’s low of $1,077, its weakest since early 2010.  U.S. gold futures for August delivery settled down 20 cents an ounce at $1,096.40.