Gold treads water near $1,160, Fed meeting in focus

Gold steadied near USD 1,160 an ounce on Tuesday as investors kept to the sidelines ahead of a Federal Reserve policy meeting that kicks off later in the session, waiting for clues on the timing of a US rate hike. 

FUNDAMENTALS

 * Spot gold was steady at USD 1,162.96 an ounce by 0027 GMT. The metal had fallen to its lowest in nearly two weeks at USD 1,158.77 on Friday, but has since firmed as the dollar gave up some recent gains. 

* The greenback fell Monday against major currencies on a decline in US bond yields and worries about the US economy after new home sales dropped steeply in September.

 * New US single-family home sales declined to near a one-year low in September after two straight months of gains, but a jump in prices suggested that housing remained on solid ground. 

* The data comes ahead of the Fed's two-day policy meet beginning on Tuesday. The US central bank is widely expected to leave rates unchanged but investors are increasingly sceptical that it will raise rates before the end of the year. The Fed holds one more policy meet this year in December.

 * Fed policymakers have been worried about weakening global growth and a relatively strong dollar disrupting US economic growth, but they have been sending out mixed messages regarding the timing of a rate hike, the first in nearly a decade.

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