Gold prices held steadily on Tuesday, as investors shied away from building new positions, amid expectations that the Federal Reserve’s meeting will deliver insight on the near tightening of the US monetary policy..

Gold is trading around $1,785.25 an ounce as of 10:35 GMT, after opening at $1,786.33, and hit an intraday high of $1,789.55, and a low of $1,782.01.

Gold closed higher by 0.2% yesterday, the second straight daily gain on strong safe-haven demand after the US consumer prices jumped to historical levels in November.

The Federal Reserve’s meeting will kick off later today, and the decisions to be revealed tomorrow, amid high bets for interest rates to remain unchanged at 0.25%.

The Fed is expected to  cut the bonds purchases program much earlier than expected, opening the door for hiking interest rates in the first half of next year.

The global markets are anticipating the meeting in order to gather more cues about the future of global monetary policy.

US consumer prices rose 6.8% in November, the fastest such rate since 1982, triggering bets surrounding the Fed's meeting this week, and raised the bets for a rate hike by 25 basis points in May 2022 .

Gold stocks at the SPDR ETF remained unchanged yesterday, with the total at the lowest level since last November 17 of 982.64 metric tonnes.

Oil prices rose on Tuesday, resuming gains after pausing yesterday, after OPEC raised its Q1 global demand outlook in its monthly report, adding that the Omicron variant impact is limited.

US crude rose 1.25% to $71.99 a barrel, after opening at $71.10, and hit a low at $70.62, and Brent crude rose 1.2% to $75.14 a barrel, after opening at $74.23, and hit a low at $73.74.

US crude fell 1.1% yesterday, and Brent crude lost 1.4%, due to concerns over Omicron in Britain.

OPEC raised its forecast for the global oil demand during the first quarter of next year, and kept the previously planned production levels unchanged.

OPEC stated the Omicron variant impact will be mild and short-lived on global demand.

Several reports in the US and South Africa indicated that the Omicron variant causes mild symptoms compared to other variants.

Sterling fell on Tuesday against a basket of major rivals for the second straight session, coinciding with Omicron developments in the UK, again threatening another economic recession in the country.

GBP/USD fell 0.2% to 1.3190, with an intraday high at 1.3217, after closing down 0.4% yesterday, the first loss in three days.

The dollar index rose 0.1% on Tuesday for another session, marking week highs at 96.49 against a basket of major rivals. 

Dollar's gains come ahead of the Federal Reserve's meeting this week, expected to announce an acceleration of the plans to cut down on bonds purchases. 

UK Prime Minister Boris Johnson announced the first death in Britain from the new Covid 19 variant "Omicron", and warned from a new wave of infections.

UK scientists announced results that two doses of the current coronavirus vaccines won't be enough to resist the impact of Omicron. 

The Australian dollar fell against most  currencies on Monday, due to renewed fears over the Omicron variant.

The UK's health authorities reported the first death caused by the Omicron variant, which raised fears of the return of lockdown restrictions, especially as Omicron is known for its ability to spread and resist vaccines.

The Federal Reserve's monetary policy meeting will launch tomorrow for two days, followed by the monetary policy statement and decision.

The US consumer price index rose by 0.8% in November after rising by 0.9% in October, higher than forecasts of a rise by 0.7%.

The year-on-year reading rose to 6.8% in November, the highest level since June 1982.

As of 16:43 GMT, AUD/USD fell by 0.7% to 0.7121.