Gold prices held steady as investors stayed on the sidelines, assessing the economic impact of the Middle East conflict ahead of the US Federal Reserve’s policy decision.

Spot gold edged down 0.1 per cent at $5,000.77 per ounce as of 0243 GMT. US gold futures for April delivery fell 0.1 pc to $5,004.60.

Gold’s trajectory “will largely depend on the Fed’s forward-looking guidance … Will the Fed still be looking for one interest rate cut (this year) or will they start to actually pencil in no cut at all due to this very fluid situation in the Middle East,” said Kelvin Wong, a senior market analyst at OANDA.

The Fed is widely expected to hold rates steady for a second straight meeting when it announces its policy decision later in the day.