Gold steadied above $920 on Wednesday, off the previous session's six-week low as traders awaited the outcome of a key Federal Reserve meeting on interest rates. The precious metal bounced back from the six-week low of $912.90 as the dollar, the main driver of the current market, was hit by concerns that the Fed would reduce expectations of higher interest rates when it concludes its meeting on Wednesday.
Bullion, which has been sliding since failing to top $1,000 this month, is expected to trade within a narrow range on Wednesday ahead of the conclusion of the Fed's meeting. Traders said speculators clearing long positions and receding worries about inflation have pressured gold since it touched a three-month high of $989.80 in early June. "The gold market's waiting for material to trade on," said Koji Suzuki, a senior analyst at SBI Futures Co Ltd.