Gold prices were almost unchanged on Wednesday after hitting their lowest in nearly five months in the previous session, with investors in 'wait-and-see' mode ahead of the outcome of a two-day meeting of the US Federal Reserve.

Fundamentals

Spot gold was steady at $1,243.10 an ounce at 0051 GMT, after marking its lowest since July 20 at $1,235.92 in the last session.

US gold futures were up 0.3 per cent at $1,245.40.

The US dollar stood near a four-week high against a basket of currencies on Wednesday after strong US wholesale price figures kept the Fed on track for a widely-expected rate rise this week and more in 2018.

US producer prices climbed in November as gasoline prices surged and the cost of other goods increased, leading to the largest annual gain in nearly six years.

Asian shares were treading water in early trade on Wednesday as crude oil futures steadied after a selloff.

US Secretary of State Rex Tillerson offered on Tuesday to begin direct talks with North Korea without pre-conditions, backing away from US demands that Pyongyang must first accept that any negotiations would have to be about giving up its nuclear arsenal.

Regardless of a return to solid economic growth, the risk of sharp appreciation in the yen means Japan's central bank would be in no rush to exit its ultra-loose monetary policy, say sources familiar with the bank's thinking.

Prime Minister Theresa May's control of the Brexit process will undergo its stiffest parliamentary test yet on Wednesday, when she faces a showdown with rebels in her own party over the laws that will take Britain out of the European Union.

British inflation unexpectedly rose to its highest level in nearly six years in November, tightening the post-Brexit vote squeeze on households whose spending is the main driver of the country's economy.