* Gold up for second session
* Coming up: Fed policy statement at 1800 GMT
(Updates prices)
By A. Ananthalakshmi
SINGAPORE, Oct 28 (Reuters) - Gold rose for a second
straight session on Wednesday, ahead of a Federal Reserve policy
statement later in the day, as investors waited for clues on the
timing of a U.S. rate hike.
Spot gold edged up 0.3 percent to $1,170.26 an ounce
by 0612 GMT, after earlier hitting a session high of $1,171.26.
The metal had risen 0.3 percent in the previous session,
snapping a four-day losing streak.
Many traders chose to stick to the sidelines ahead of a Fed
statement at 1800 GMT 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.
"We do not detect any real conviction that the Fed is likely
to raise rates near term," said HSBC analyst James Steel,
warning, however, that prices could slip if gold doesn't move
higher soon.
"If gold cannot push convincingly higher soon, recent longs
may become disenchanted and liquidate. Although we are price
positive long term, in the near term this could knock gold back
below $1,150/oz quite rapidly," he said.
Hedge funds and money managers raised their bullish bets on
COMEX gold for a fifth straight week in the week to Oct. 20 to
their highest since February, according to latest data from the
Commodity Futures Trading Commission.
Gold has been supported in recent weeks on rising
speculation that the Fed will delay its first rate hike in
nearly a decade to next year due to concerns over global growth
and the impact on the U.S. economy.
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.
Bullion has been weighed down all year by uncertainty over
the timing of a rate hike. Ultra-low rates boost the appeal of
non-interest-paying gold.
It was supported on Tuesday after data 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 that could prompt the Fed to delay
a rate hike.
Asian stocks slipped on Wednesday, taking cues from an
overnight decline on Wall Street, while the dollar index .DXY
held steady as a wait-and-see mood prevailed ahead of a policy
statement from the Fed.
PRICES AT 0612 GMT
Metal Last Change Pct chg
Spot gold 1170.26 3.71 0.32
Spot silver 15.96 0.12 0.76
Spot platinum 993.5 10.5 1.07
Spot palladium 676.5 2 0.3
Comex gold 1170.6 4.8 0.41
Comex silver 15.955 0.092 0.58
COMEX gold and silver contracts show the
most active months