Investing.com - Gold prices were little changed during European morning hours on Wednesday, as investors prepared for a rate hike by the Federal Reserve while keeping an eye on the outcome of the Dutch election.
Comex gold futures inched up 75 cents to $1,203.35 a troy ounce by 4:00AM ET (08:00GMT), staying close to last Friday's low of $1,194.50, which was the weakest level since January 31.
Meanwhile, spot gold was up $5.00 at $1,203.85 per ounce.
The Fed is widely expected to raise the fed funds target range by a quarter point at the conclusion of its policy meeting at 2:00PM ET (18:00GMT) on Wednesday, which would put it in a range between 0.75%-1%.
The U.S. central bank will also release its latest forecasts for economic growth and interest rates, known as the "dot-plot".
Fed Chair Janet Yellen is to hold what will be a closely-watched press conference 30 minutes after the release of the Fed's statement, as investors look for any hawkish change in tone about the economy or future rate hikes.
Fed officials previously projected three rate hikes in 2017, but that might move up to four, amid signs of a recent uptick in inflation and continued strength in the jobs market.
Besides the Fed, the U.S. will publish February inflation figures at 8:30AM ET (12:30GMT) Wednesday. Market analysts expect consumer prices to ease up 0.1%, while core inflation is forecast to increase 0.2%.
On a yearly base, core CPI is projected to climb 2.2%. The Fed usually tries to aim for 2% core inflation or less. Rising inflation would be a catalyst to push the U.S. central bank toward raising interest rates.
At the same time, the U.S. will also publish data on February retail sales, amid expectations for a gain of 0.1% last month, after rising 0.4% in January.
Meanwhile, investors were focusing on political risks in Europe. Wednesday's Dutch election is being watched as a bellwether for the spread of populism in Europe, particularly ahead of next month's French election.
Opinion polls have suggested that Dutch nationalist Geert Wilders' right-wing Freedom Party, which wants to take the Netherlands out of the European Union and stop Muslim immigration, has lost its lead to more mainstream opponents.
However, a diplomatic standoff with Turkey was seen influencing voting in Wilders' favor, prompting investors to remain weary over the possibility of a Brexit or Trump-style shock result.
The first exit polls are expected at 20:00GMT (4PM ET).
Elsewhere, in France, presidential candidate Francois Fillon was put under formal investigation on Tuesday over misuse of public funds in the fake jobs scandal involving his wife, the prosecutor's office said.
Fillon has said he would maintain his bid as the candidate of The Republicans party in the April-May presidential election even if he went under formal investigation.
In Britain, concerns have increased over a prolonged and painful process of the U.K.'s exit from the European Union, as Scotland mulled a possible second independence referendum.