Gold inches up as dollar slips ahead of Fed rate decision

(Reuters) - Gold prices edged higher in Asian trade on Wednesday on a weaker dollar and as markets waited for the outcome of the U.S. Federal Reserve's policy meeting later in the day.

FUNDAMENTALS

* Spot gold > was up 0.2 percent at $1,159.66 an ounce by 0035 GMT.

* U.S. gold futures were 0.2-percent higher at $1,161.20 per ounce.

* The dollar index <.DXY>, which measures the greenback against a basket of currencies, was down 0.1 percent at 100.990.

* The Fed is widely expected to hike U.S. interest rates at this week's Federal Open Market Committee meeting. The outcome of the policy meeting will be announced at 1900 GMT, followed by Chair Janet Yellen's news conference half an hour later.

 

* Asia shares followed Wall Street higher on Wednesday, with markets certain the Fed will raise rates for the first time in a year but less sure what it might signal for policy in 2017.

* U.S. import prices recorded their biggest drop in nine months in November on declining petroleum costs, with renewed dollar strength threatening to keep imported inflation subdued.

* ICE Futures U.S. says it will begin trading a new gold daily futures contract at the start of trading for trade date Jan. 30, 2017.

* Newmont Mining Corp said on Tuesday it is likely to record a non-cash impairment charge of between $1 billion and $1.2 billion in the fourth quarter related to an increase in the estimated cost of closing down its Yanacocha gold mine in Peru.

(Reporting by Swati Verma in Bengaluru; Editing by Joseph Radford)