* Gold little changed, trades near 1-month low
* Fed kicks off policy meeting on Wednesday
* Rate hike could see gold dip below $1,100 -OCBC
(Updates prices)
By A. Ananthalakshmi
SINGAPORE, Sept 15 (Reuters) - Gold steadied near a
one-month low on Tuesday as investors kept to the sidelines,
waiting for the Federal Reserve's outlook this week on U.S.
interest rates.
Spot gold XAU= was little changed near $1,108.20 an ounce
by 0633 GMT, just above a one-month low of $1,098.35 reached
last week. U.S. gold GCcv1 was trading at $1,107.60.
Investors are waiting for a statement from the Fed on
Thursday, following a two-day policy meet, to see whether the
U.S. central bank will raise rates for the first time in nearly
a decade.
Expectations that the Fed will hike rates this week have
eased recently due to concerns over slowing economic growth in
China and volatility in financial markets.
But traders warned gold was unlikely to make a significant
move before the Fed decision.
"If the Fed happens to keep rates on hold, gold will likely
find a bid," said MKS Group trader Jason Cerisola, adding that
prices could face resistance at $1,154 and $1,170 on the move
higher.
A rate hike would be a clear impetus for a drop to below
$1,100, said analysts at OCBC Bank.
"Even if a rate hike does not materialise this week, the
cards for a rate hike in subsequent FOMC meetings are still on
the table, and thus explaining a general cautiousness on gold
prices for the year ahead," they said.
Higher rates could dent demand for non-interest-paying
bullion, while boosting the dollar.
Lack of clarity over the timing of a rate hike has weighed
on gold all year, sending it down over 6 percent.
PIMCO, one of the world's largest asset managers and advised
by former Fed chairman Ben Bernanke, puts a "below 50 percent
chance" the Fed will raise short-term interest rates this week,
Chief Investment Officer Dan Ivascyn told Reuters on Monday.
ID:nL1N11K29A
A small majority of forecasters are sticking to their guns
and predicting the Fed will pull the trigger this week.
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PRICES AT 0633 GMT
Metal Last Change Pct chg
Spot gold 1108.2 -0.2 -0.02
Spot silver 14.36 -0.05 -0.35
Spot platinum 950.49 -2.01 -0.21
Spot palladium 584 -2 -0.34
Comex gold 1107.6 -0.1 -0.01
Comex silver 14.37 0.007 0.05
Euro 1.1311
DXY 95.261
COMEX gold and silver contracts show the
most active months