* 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