Gold prices fell slightly on Wednesday after reaching a more than five-month high earlier in the day on expectations of a dovish rate hike by the Federal Reserve later in the day.
Spot gold dropped 0.1 percent to $1,248.39 per ounce after hitting its highest level since July 11 at $1,251.06 earlier in the session. U.S. gold futures were also down 0.1 percent at $1,252.25 per ounce.
The Fed ends its two-day policy meeting later today, with many expecting a 25 bps rate hike, despite President Donald Trump's criticisms.
However, the policy statement accompanying the rate decision is likely to be dovish amid rising risks to growth.
The U.S. dollar held slightly weak while equity markets across Asia and Europe steadied somewhat after recent heavy losses on concerns about global growth.
Investors reacted positively to reports suggesting that the U.S. and China will hold a series of trade talks in January aiming for a preliminary resolution of the issues underpinning their trade war.
Elsewhere, Italy's populist government has reached an informal agreement with the EU on the country's disputed 2019 budget following discussions with senior officials in Brussels.
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