* Gold rises for third straight day
* Asian shares, dollar slip
* Coming up: Fed statement after policy meeting at 1800 GMT
(Updates prices)
By A. Ananthalakshmi
SINGAPORE, April 27 (Reuters) - Gold ticked higher for a
third straight session on Wednesday on a softer dollar and weak
U.S. economic data, but the metal traded in a tight range as
investors waited for the Federal Reserve's policy decision later
in the session.
The dollar extended losses against a basket of major
currencies as investors believed the weakness in the U.S.
economy would prompt the Fed to be cautious about raising rates.
The Fed is likely to keep rates steady later on Wednesday,
and the focus rests squarely on the tone of its statement and
any timing for an eventual rate hike. The U.S. central bank
raised rates in December for the first time in nearly a decade.
Spot gold XAU= had risen 0.3 percent to $1,246.20 an ounce
by 0655 GMT, following a 0.4-percent gain in the previous
session. Silver XAG= rose 1 percent to $17.33.
"Gold ground higher, continuing to trade in a tight range.
The weaker dollar has supported demand, but investors remain
wary heading into the central bank meetings," ANZ analysts said.
"An unchanged economic outlook and a more balanced
assessment of the risks should enhance the Fed's confidence to
proceed with further normalisation," they said.
OCBC Bank said the Fed "could strike a careful balance
between calling for gradual policy normalisation and making
sense of the recent spate of mixed economic data amid slightly
stronger crude oil prices."
Gold is highly sensitive to rising rates, which lift the
opportunity cost of holding non-yielding bullion, while boosting
the dollar, in which it is priced.
It has rallied 17 percent this year on speculation that the
Fed may not raise rates this year amid uncertainty over the
global economy.
Data on Tuesday showed orders for long-lasting U.S.
manufactured goods rebounded far less than expected in March,
implying that business spending and economic growth were weak in
the first quarter. Another report showed an ebb in consumer
confidence in April.
Gold prices that hit a 13-month high last month are likely
to fall back in the short term because of a slump in demand from
key Asian consumers, GFMS analysts at Thomson Reuters said in a
report on Tuesday.
Global gold demand tumbled by 24 percent year on year to 781
tonnes in the first three months of the year, its weakest
quarter in seven years, GFMS said. PRICES AT 0655 GMT
Metal Last Change Pct chg
Spot gold 1246.2 3.61 0.29
Spot silver 17.33 0.167 0.97
Spot platinum 1015 7 0.69
Spot palladium 605.4 4.9 0.82
Comex gold 1247.7 4.3 0.35
Comex silver 17.375 0.265 1.55
COMEX gold and silver contracts show the
most active months