PRECIOUS-Gold prices flat as markets await Fed tapering timeline – Reuters

PRECIOUS-Gold prices flat as markets await Fed tapering timeline – Reuters

Sept 21 (Reuters) - Gold prices were flat on Tuesday as investors adopted a risk-averse stance amid caution ahead of U.S. Federal Reserve’s policy meeting where the central bank is expected to provide cues on when it will begin tapering its asset purchases.

Bullion is considered as a hedge against inflation and currency debasement likely resulting from the widespread stimulus. A hawkish move by the Fed would diminish gold’s appeal, while an eventual interest rate hike would also raise the opportunity cost of holding the non-interest bearing asset.

* Spot gold was steady at $1,763.60 per ounce, as of 0123 GMT.