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Spot gold steadied on Tuesday ahead of the Federal Reserve's policy meeting as the market keenly awaited the U.S. central bank's outlook for cues on the interest rate path in 2025.

Spot gold ticked up 0.1% to $2,655.07 per ounce, as of 0335 GMT. U.S. gold futures were flat at $2,672.40.

"The market has almost discounted a 25-basis-point cut; however the 2025 outlook, the Fed dot chart and (Fed Chair Jerome) Powell's statements will be key to gauge the Fed's stance for the first half of next year," said Jigar Trivedi, a senior analyst at Reliance Securities.

"The yellow metal may witness a technical correction, but that would be an opportunity to go long."

The Federal Open Markets Committee (FOMC) is due to convene later in the day for its last policy meeting of 2024 and will announce its interest rate decision on Wednesday.

Markets see a 96.3% chance of a quarter-point rate cut at the meeting but have only priced in a roughly 16.5% chance of a similar reduction in January, according to CME's FedWatch tool.

The Bank of Japan, Bank of England, Riksbank and Norges Bank are expected to deliver their policy verdicts on Dec. 19 and the European Central Bank is expected to cut rates again next year if inflation settles at its 2% target.

Non-yielding gold tends to shine in a low interest rate environment and during economic or geopolitical crisis.

On the geopolitical front, the United States on Monday hit North Korea and Russia with new sanctions that the Treasury Department said targeted Pyongyang's financial activities and military support to Moscow.

Traders are also keeping a tab on key data releases this week, including the U.S. GDP and inflation figures, which could further influence market sentiment.

Spot silver was down 0.2% to $30.47 per ounce, platinum steadied at $936.30, while palladium was flat at $947.41.