Gold steadies after fall; equities watched

SINGAPORE (Reuters) - Gold held steady on Wednesday as fears of an escalation of tensions in Ukraine eased slightly but markets remained cautious ahead a policy decision by the U.S. Federal Reserve.

The Fed is expected to continue to reduce its monthly bond purchase programme, but also to alter its forward guidance when it gives its statement later in the day. The meeting will be the first presided over by Fed Chair Janet Yellen.

FUNDAMENTALS

* Spot gold was little changed at $1,356.80 an ounce by 0026 GMT. The metal rallied on Monday to a six-month high at $1,391.76 before investors started to cash in profits, taking it to $1350.19 on Tuesday.

* U.S. gold was at $1,357.20 an ounce, down 0.13 percent.

* The White House on Tuesday condemned Russian President Vladimir Putin's annexation of Crimea from Ukraine and said it was preparing a fresh round of sanctions in response to the worst East-West crisis since the Cold War.

MARKET NEWS

* Asian share markets opened on a tentative footing on Wednesday, with investors cautious amid the backdrop of East-West geopolitical tensions involving Ukraine and ahead of a closely-watched Federal Reserve policy review later in the session.

* U.S. crude oil futures rose by more than $1 per barrel to its highest price in a week on Tuesday, following strong gains in equities outweighed forecasts for another build in domestic supplies, while Brent was bolstered by concerns over violence in Crimea.

(Reporting by Lewa Pardomuan; Editing by Richard Pullin)