* Concerns over Brexit risk support prices above $1,280/oz
* Investors await Fed policy statement for cues on rate
rises
* GRAPHIC-2016 asset returns: http://reut.rs/1WAiOSC
(Updates prices, adds comment)
By Jan Harvey
LONDON, June 15 (Reuters) - Gold eased from the previous
session's six-week high ahead of a Federal Reserve policy
decision later on Wednesday, though concerns over an upcoming
vote on Britain's membership of the European Union underpinned
prices.
The metal has rallied for the last five sessions as assets
seen as higher risk, such as shares, saw heavy losses on the
back of Brexit fears, while yields on safe-haven German Bunds
fell below zero for the first time. MKTS/GLOB
Gold has taken a breather, however, as dealers await the Fed
meeting. The metal is highly sensitive to U.S. interest rates,
increases in which lift the opportunity cost of holding
non-yielding gold, while boosting the dollar, in which it is
priced.
Spot gold XAU= was down 0.3 percent at $1,282.60 an ounce
at 1340 GMT, while U.S. gold futures GCv1 for August delivery
were down $2.40 an ounce at $1,285.70.
The Fed is expected to keep interest rates unchanged on
Wednesday and signal if it still plans to raise rates twice in
2016 amid concerns about a U.S. hiring slowdown and Britain's
possible exit from the European Union.
"After the jobs data we got two weeks ago, everyone expects
the Fed will not hike interest rates today," LBBW analyst
Thorsten Proettel said. "What we can get from the meeting is new
information about the path of interest rates."
The threat of Brexit is a more immediate driver for gold, he
said. "The latest data we got from polls shows the 'Leave' group
is getting more support, and nervousness is going up. That has
brought the gold price to higher levels," he said.
European shares rose and sterling gained against the dollar
and yen on Wednesday. The pound is recovering from a slide to
two-month lows on concerns over next week's Brexit referendum.
MKTS/GLOB GBP/
Gold priced in sterling XAUGBP=R was down nearly 1 percent
after hitting its highest in nearly three years on Tuesday.
Holdings in SPDR Gold Trust GLD , the world's largest
gold-backed exchange-traded fund, rose 0.27 percent to 898.67
tonnes on Tuesday, the highest since October 2013. GOL/ETF
Appetite for gold in Asia, home to the world's biggest
physical bullion markets, was muted overnight.
"Today's FOMC announcement is likely resulting in many
participants taking a back seat and the metal held a narrow
range accordingly," MKS said in a note.
Among other precious metals, silver XAG= was up 0.5
percent at $17.47 an ounce, platinum XPT= was up 0.6 percent
at $978.80 an ounce and palladium XPD= was 1.2 percent higher
at $539.50 an ounce.
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GRAPHIC-2016 asset returns: http://reut.rs/1WAiOSC
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