* Fed set to keep rates unchanged, cite gloomy global outlook
* SPDR Gold holdings at highest since November
* Coming up: Federal Reserve statement at 1900 GMT (Updates prices, adds comment)
By Clara Denina
LONDON, Jan 27 (Reuters) - Gold steadied below a 12-week peak on Wednesday as investors remained cautious ahead of the Federal Reserve's first policy statement of the year, which is expected to give clues on interest rates.
While the U.S. central bank is likely to keep key rates unchanged at the conclusion of its two-day meet later in the day, investors are keen to see its latest outlook on global economic headwinds.
"A potential further decline in equities and market uncertainty about global growth is a good environment for gold because investors want something defensive," ETF Securities analyst Martin Arnold said.
Spot gold XAU= was down 0.2 percent at $1,117.46 an ounce by 1437 GMT, within sight of Tuesday's peak of $1,122.90, its strongest since Nov. 3.
U.S. gold for February delivery GCcv1 was also down 0.2 percent at $1,117.90 per ounce.
After a 10 percent drop in 2015, its third year of losses, gold has so far benefited from turmoil in equity markets and worries about an economic slowdown in China, which contributed to lift prices by nearly 6 percent this month.
The dollar fell 0.4 percent versus a basket of currencies .DXY , while European equities succumbed to another slide in oil prices. MKTS/GLOB
"We had a more benign view of the dollar earlier this year, we are now not expecting the dollar to be quite so strong," Citi strategist David Wilson said.
A weaker dollar makes gold cheaper for holders of other currencies.
Reflecting rising confidence in gold, holdings of SPDR Gold Trust GLD , the world's largest gold-backed exchange-traded fund, stood at 21.52 million ounces on Tuesday, the highest since Nov. 5. GOL/ETF
China's net gold imports for December via main conduit Hong Kong surged to the highest in more than two years, data showed on Tuesday, as investors lost faith in collapsing stock markets and a weakening currency. has taken advantage of low gold prices and an equity market rout to stock up on gold assets," said Helen Lau, analyst at Argonaut Securities.
Lau expects China's gold imports to remain strong due to a seasonal demand surge ahead of the Lunar New Year holiday in February.
Spot silver XAG= slipped 0.2 percent to $14.46 an ounce, platinum XPT= rose 0.5 percent to $878.60 and palladium XPD= was up 0.6 percent at $492.70.