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Gold Falls On Investor Caution Ahead Of Fed Policy Review

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LONDON, March 19 (Reuters) - Gold fell around one percent, with the dollar and European shares steadying, as the market focus cautiously shifted from Ukraine to a policy decision by the United States Federal Reserve later on Wednesday.

It is expected to reduce its monthly bond purchase programme for a third time in a row, and to provide guidance on when it might eventually raise interest rates.

"The move down for gold has started at the beginning of the week and one reason is that clearly the Crimean crisis is being priced out, resulting in some risk appetite among market players," Commerzbank commodity analyst Daniel Briesemannsaid.

"On the other side, really low inflation and positive economic data for February published in the U.S. is also weighing on the gold price," he added. "The U.S. Fed meeting is clearly something market players are focusing their attention on."

Spot gold slipped 1 percent to a session low of $1,359.65 an ounce earlier and was down 0.9 percent to $1,343.60 by 1259 GMT. The metal rallied on Monday to a six-month high of $1,391.76 before investors started to cash in profits, prompting three days of losses.

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