FEDERAL RESERVE

Gold fell in Europe on Wednesday as a 1 percent rise in the dollar outweighed potentially supportive news that the U.S. Federal Reserve is holding interest rates at record lows and extending quantitative easing.

Gold edged up on Wednesday on bargain hunting driven by a drop in stock markets and after the U.S. Federal Reserve said it would keep interest rates low, but a lack of physical buying could cap gains. The dollar slipped toward a 15-year low against the yen after the Fed took steps to bolster the fragile U.S. recovery, while Asian stocks tracked losses in Wall Street and were also dragged down by tech sales.

Gold prices fell for a second day in Europe on Tuesday as the dollar strengthened, but prices did not stray far from $1,190 an ounce as traders awaited the outcome of a U.S. Federal Reserve monetary policy meeting.

The Federal Reserve's monetary policy committee gathered for a one-day meeting on Tuesday to consider, and perhaps adopt, additional measures to prop up a softening U.S. economic recovery.

Gold retreated in Asian trade Tuesday, ahead of a crucial US Fed policy meeting. Gold for immediate delivery was seen trading at $1199.74 an ounce at 12.00 noon Singapore time while US gold futures for December delivery was at $1201.8 an ounce. Analysts said investors are hopeful of Fed taking steps to ease monetary policy later in the day, boosting bullion's safe-haven appeal.

Gold prices eased below $1,200 an ounce in Europe on Tuesday as the dollar strengthened, but remained supported by uncertainty ahead of a monetary policy meeting of the U.S. Federal Reserve later in the day.

Gold steadied around $1,200 on Tuesday on bargain hunting as investors bet the U.S. Federal Reserve would take further steps to ease monetary policy later in the day, boosting bullion's safe-haven appeal.

The economic recovery will fade as government supports dry up, and the Federal Reserve may need to do more to boost growth, economists said in a survey on Tuesday.

The U.S. economic recovery will fade as government supports dry up, and the Federal Reserve may need to do more to boost growth, economists said in a survey on Tuesday.

Gold ticked lower on Tuesday as early bargain hunting subsided, but investors bet the U.S. Federal Reserve would take further steps to ease monetary policy later in the day, boosting bullion's safe-haven appeal.

There is a significant chance the U.S. economy will slip back into recession in the next two years although a reversal is unlikely in the next few months, researchers at the San Francisco Federal Reserve Bank said on Monday.

Even with U.S. interest rates already near zero, Federal Reserve policymakers will still spend much of a meeting on Tuesday discussing ways to offer more rather than less monetary stimulus to the economy.

The Federal Reserve on Tuesday may send a clear signal it is prepared to print more money to support a faltering economic recovery if necessary.

The cost of borrowing dollars in Asian interbank markets fell to a three-month low on Thursday after recent poor economic data fuelled expectations the Federal Reserve would resume buying Treasuries to support liquidity.

The dollar neared a 15-year low against the yen on Wednesday, staying under pressure across the board as weak U.S. data and talk of further policy easing from the Federal Reserve weighed on Treasury yields.

Federal Reserve Chairman Ben Bernanke's personal finances recovered in 2009, disclosure forms released by the central bank on Friday showed.

St. Louis Federal Reserve Bank President James Bullard on Friday said there is unanimity among officials on the central bank's policy-setting panel over providing more support to the economy if the recovery suffers a serious setback.

St. Louis Federal Reserve Bank President James Bullard said the risk of deflation in the United States has risen somewhat compared with the beginning of this year, the Nikkei newspaper reported.

Federal Reserve officials clashed on Thursday over whether the central bank should be more aggressive in supporting the stumbling economy and one said the Fed's current policy may be contributing to worryingly low levels of inflation.

The Federal Reserve should consider buying more Treasury securities, instead of promising an extended period of low rates to support recovery, should inflation drift lower, a top Fed official said.

The U.S. Senate Banking Committee on Wednesday approved the nomination of three new members to the Federal Reserve's powerful board, including Janet Yellen for vice chairman, clearing the way for a final vote by the whole Senate.