SINGAPORE, Dec 16 (Reuters) - Gold drifted in a narrow range on Wednesday as investors awaited the conclusion of a Federal Reserve policy meeting at which the U.S. central bank is expected to raise rates for the first time in nearly a decade.
FUNDAMENTALS
* Spot gold XAU= edged up 0.2 percent to $1,062.40 an ounce by 0043 GMT, after closing lower in the last two sessions.
* Eight years after a devastating recession opened an era of loose U.S. monetary policy, the Fed on Tuesday began a two-day meeting at which it is expected to turn in the other direction and raise rates in an increasingly normal economy.
* The decision will be released on Wednesday at 1900 GMT, with markets prepared for an initial 25 basis point "liftoff" . It is to be followed by a news conference by Fed Chair Janet Yellen to elaborate on the central bank's latest policy statement. urn:newsml:reuters.com:*:nL1N1441IT
* Higher rates would dent demand for non-interest-paying gold, while boosting the dollar.
* Investors have already sent gold down 10 percent this year in anticipation of higher rates and the strength in the dollar. The metal fell to near-six-year lows earlier in the month.
* Some traders say a rate hike is already priced into gold, and any indications from the Fed that further rate hikes would be slow and gradual could send the metal higher after the Fed meeting.
* However, any gains could be short lived as other fundamentals are weak. urn:newsml:reuters.com:*:nL8N14419A
* Elsewhere, Venezuelan central bank gold holdings declined in value by 24 percent between January and October, according to a central bank statement. urn:newsml:reuters.com:*:nL1N1442PB
* A leading bullion association in India is offering free membership to jewellers across cities and small towns ahead of a planned launch of the country's first physical gold exchange, a move aimed at standardising prices and improving transparency.
* Zimbabwe should reduce the royalty fee levied on platinum producers from the current 10 percent to help mining firms offset the impact of low prices, the country's mining chamber said. urn:newsml:reuters.com:*:nL8N1442GP
* For the top stories on metals and other news, click TOP/MTL or GOL
MARKET NEWS
* The dollar was broadly firmer early on Wednesday, having bounced on the back of higher Treasury yields as the market counts down the hours to a likely hike in U.S. interest rates.
DATA AHEAD (GMT)
0800 France Markit manufacturing flash PMI Dec
0830 Germany Markit manufacturing flash PMI Dec
0858 Euro zone Markit manufacturing flash PMI Dec
1000 Euro zone Eurostat trade Oct
1330 U.S. Housing starts Nov
1330 U.S. Building permits Nov
1415 U.S. Industrial output Nov
1445 U.S. Markit manufacturing flash PMI Dec
1900 Federal Reserve releases statement after policy meeting
1930 Federal Reserve Chair Janet Yellen holds new briefing
PRICES AT 0043 GMT Metal
Last
Change Pct chg
Spot gold
1062.4
2.04
0.19 Spot silver
13.79
0.04
0.29 Spot platinum
856
0.97
0.11 Spot palladium
563.13
-1.59
-0.28 Comex gold
1061.6
0
0 Comex silver
13.77
0
0
COMEX gold and silver contracts show the most active months