SINGAPORE, Oct 28 (Reuters) - Gold retained small overnight
gains on Wednesday, but caution prevailed ahead of a Federal
Reserve policy statement later in the session as investors
waited for clues on the timing of a U.S. rate hike.
FUNDAMENTALS
* Spot gold XAU= was little changed at $1,165.81 an ounce
by 0030 GMT. The metal had risen 0.3 percent in the previous
session, snapping a four-day losing streak.
* Bullion was supported after data on Tuesday showed a
second straight drop in a gauge of U.S. business investment in
September and a decline in consumer confidence this month,
hinting at economic weakness. urn:newsml:reuters.com:*:nL1N12R0Z6
* But gains in the metal were limited as the dollar rose.
USD/
* Many investors also chose to stick to the sidelines ahead
of a statement by the Fed on Wednesday following a two-day
policy meeting.
* The U.S. central bank is not expected to raise rates on
Wednesday, but markets will be eyeing the statement for the
Fed's take on the U.S. and global economies, and whether it
could hike rates at its next meeting in December.
* The Fed had refrained from raising rates last month,
citing global concerns. Fed Chair Janet Yellen has since said
the bank would still increase rates this year, though some other
policymakers have said otherwise. urn:newsml:reuters.com:*:nL1N12N2MZ
* Bullion has been weighed by uncertainty over the timing of
a rate hike. Ultra-low rates boost the appeal of
non-interest-paying gold.
* In physical markets, China's net gold imports from main
conduit Hong Kong jumped to a 10-month high in September, data
showed on Tuesday, in a strong sign of recovering demand in the
second half of the year. urn:newsml:reuters.com:*:nL3N12R3AM
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MARKET NEWS
* Asian stocks slipped early on Wednesday, taking cues from
an overnight decline on Wall Street, while a wait-and-see mood
prevailed ahead of a policy statement from the Fed.
DATA AHEAD (GMT)
0700 Germany GfK consumer sentiment Nov
0700 Germany Import prices Sep
0745 France Consumer confidence Oct
1230 U.S. Trade data Sep
1800 Fed releases statement after policy meeting
PRICES AT 0030 GMT
Metal Last Change Pct chg
Spot gold 1165.81 -0.74 -0.06
Spot silver 15.87 0.03 0.19
Spot platinum 985.24 2.24 0.23
Spot palladium 674.22 -0.28 -0.04
Comex gold 1166 0.2 0.02
Comex silver 15.87 0.007 0.04
COMEX gold and silver contracts show the
most active months