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Gold Gains on Weaker Dollar, Stocks ahead of Fed Verdict

* Fed’s policy statement is due at 1800 GMT

* Silver bounces off near four-month lows hit on Tuesday (Recasts, adds comment, and updates prices)

July 28 (Reuters) - Gold prices firmed on Wednesday, drawing support from weaker equities and a subdued dollar, though gains were limited as markets cautiously awaited fresh insight into the U.S. Federal Reserve’s views on inflation and economic growth.

Spot gold was up 0.3% at $1,804.69 per ounce, as of 0707 GMT. U.S. gold futures rose 0.2% to $1,803.40 per ounce.

“Gold is benefiting from some risk-hedging buying by investors ahead of tonight’s FOMC (Federal Open Market Committee) meeting outcome,” Jeffrey Halley, a senior market analyst, Asia Pacific at OANDA said.

Fed’s policy statement is due at 1800 GMT later in the day followed by a news conference by Chairman Jerome Powell.

Bullion had slumped 7% in June after the Fed struck a hawkish tone in its last meeting.

Investors will look for cues on when the central bank will begin to taper its monetary support amid fast-rising prices and any view on the looming threat from Delta coronavirus variant.

“Investors need some fresh triggers because gold has been stuck in a tight range,” Jigar Trivedi, a commodities analyst at Mumbai-based broker Anand Rathi Shares said.

“If support of $1,790 is broken, then $1,750 and $1,740 are possible. On the higher side, if $1,810-$1,815 is taken out with the support of volume, $1,840 will be the new resistance.”

Meanwhile, Asian shares were stuck at a seven-month trough on Wednesday, adding to bullion’s safe-haven appeal.

The U.S. dollar was pinned below the 3-1/2-month peak scaled last week, curbed by a decline in real yields and trepidation ahead of the Fed’s policy decision.

Silver rose 0.6% to $24.82 per ounce, after having hit its lowest level in nearly four months at $24.46 on Tuesday.

Palladium and platinum were up 0.7% at $2,626.93 and $1,057.99 per ounce, respectively.

Reporting by Eileen Soreng in Bengaluru; Editing by Vinay Dwivedi and Sherry Jacob-Phillips

Source: Reuters

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