* Gold rises ahead of Fed policy statement at 1800 GMT
* Prices run into resistance at 200-day moving average
* GRAPHIC-2015 asset returns: http://link.reuters.com/dub25t
(Updates prices, adds comment)
By Jan Harvey
LONDON, Oct 28 (Reuters) - Gold rose above $1,180 an ounce
on Wednesday as the dollar fell ahead of the Federal Reserve's
latest policy statement, which is expected to give more clues
about the timing of an expected U.S. interest rate rise.
The metal edged back above its 200-day moving average at
$1,172 an ounce, a key chart level that it breached this month
for the first time since May.
Spot gold XAU= rose as much as 1.3 percent to $1,182.50 an
ounce -- its highest in nearly two weeks -- and was up 1.1
percent at $1,179.65 by 1436 GMT. U.S. gold futures GCv1 for
December delivery climbed by $14.40 an ounce to $1,180.20.
The Fed is expected to keep interest rates on hold when its
two-day policy meeting concludes at 1800 GMT and may struggle to
convince investors it can tighten monetary policy before the end
of the year in the face of U.S. and global economic pressures.
urn:newsml:reuters.com:*:nL1N12R2IF
"As economies are so inter-correlated, it is difficult to
see the Fed raising rates this year, when China, Japan and the
euro zone are still on the monetary expansion pattern,"
ActivTrades chief analyst Carlo Alberto de Casa said.
"For that reason, I can't see gold falling below $1,100
until the end of the year."
Expectations that the Fed was on track to raise interest
rates for the first time in nearly a decade, lifting the
opportunity cost of holding non-yielding bullion while boosting
the dollar, helped to push gold to 5-1/2 year lows in July.
The metal has since rebounded after a string of
disappointing U.S. data and as concerns grew over growth
elsewhere in the world, particularly China.
The Fed held off raising rates last month, citing global
concerns. Fed Chair Janet Yellen has since said that the bank
would still increase rates this year, though some other
policymakers have said otherwise. urn:newsml:reuters.com:*:nL1N12N2MZ
Gold took support on Tuesday from data showing a second
straight drop in a gauge of U.S. business investment in
September and a decline in consumer confidence this month.
"Weak U.S. economic data lent weight to the notion the Fed
would refrain from raising rates any time soon, which in turn
supported bullion," HSBC said in a note.
From a technical perspective, Commerzbank (DE:CBKG) said in a weekly
report that gold is consolidating after reaching the 50 percent
retracement of the drop from its January highs to its July low.
Dips lower are expected to hold at around $1,150 to $1,135 for
another leg higher to then take hold, it said.
Silver XAG= rose 2.9 percent to $16.27 an ounce, while
platinum XPT= was up 2.1 percent at $1,003.80 and palladium
XPD= climbed 1.8 percent to $686.45.