SINGAPORE(BullionStreet): Gold remained steady in Asian trade Wednesday as investors eagerly await the outcome of a key US Fed meeting.

Gold for immediate delivery was seen trading at $1710.52 an ounce at 12.00 noon Singapore time while US gold was seen trading at $1711.64 an ounce on the comex.

Analysts said the precious yellow metal is likely to extend gains during the day on expectations the Fed will unveil more bond buying measures, supporting bullion's appeal as a hedge against inflation.

Markets rallied Wednesday as investors were optimistic that a deal would be reached to avert the so called fiscal cliff. Federal Reserve officials started a two-day policy-setting meeting on Tuesday, with news from the meeting to come Wednesday.

Economists expect the Fed to announce monthly bond purchases of $45 billion to replace the Operation Twist programme that will expire at the end of the year, signaling it will continue to pump money into the economy in the new year in a bid to bring down unemployment.

On Tuesday, gold futures settled lower for the first fall in four trading sessions, with investors anxiously awaiting the US Federal Reserve's decision on monetary policy Wednesday.

February gold fell $4.80, or 0.3%, to settle at $1,709.60 an ounce on the Comex division of the New York Mercantile Exchange.