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Fed statement due at 1900 GMT
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Gold scaled over five-month peak on Tuesday
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UK inflation falls from 41-year high
Dec 14 (Reuters) - Gold prices held above the $1,800 per ounce pivot on Wednesday as signs of cooling U.S. inflation lifted expectations the Federal Reserve will adopt a less aggressive policy stance later in the day.
Spot gold was down 0.3% at $1,805.09 per ounce, as of 1242 GMT. U.S. gold futures eased 0.4% to $1,818.
Gold price rose as much as 2.4% to their highest level in more than five months on Tuesday after data showing a smaller-than-expected rise in U.S. consumer prices sent the dollar tumbling.
Making gold more appealing for other currency holders, the dollar was down 0.1% against its rivals at 103.940, not far off a six-month low of 103.57 it touched post the inflation data.
"There's clearly a belief that the end of the tightening cycle is in sight, traders are just waiting for the Fed to give the nod," said Craig Erlam, senior market analyst at OANDA.
"If the Fed softens its tone later today, we could see gold break and hold above $1,810, potentially giving it a santa rally of its own this year."
The Fed's decision is scheduled at 1900 GMT, followed by a press conference from Fed Chair Jerome Powell. The U.S. central bank is widely expected to increase rates by 50 basis points.
Lower rates tend to be beneficial for bullion as it decreases the opportunity cost of holding the non-yielding asset.
"The Fed would have priced in the latest CPI data and is unlikely to change their interest rate view in the short term," said Michael Langford, director at corporate advisory firm AirGuide.
Data showed Britain's inflation fell more sharply than expected in November, offering some comfort to the Bank of England as it prepares to raise interest rates again.
Elsewhere, silver fell 0.4% to $23.62, platinum lost 0.8% to $1,025 and palladium slipped 0.6% to $1,919.14. (Reporting by Brijesh Patel in Bengaluru; editing by Barbara Lewis and Louise Heavens)
