* Gold rises for third day running
* Fed says U.S. labor market had improved
* GRAPHIC-2016 asset returns: http://reut.rs/1WAiOSC
(Rewrites throughout, updates prices. Adds Fed statement,
comment, second byline, NEW YORK dateline)
By Marcy Nicholson and Clara Denina
NEW YORK/LONDON, April 27 (Reuters) - Gold rose for a third
straight session on Wednesday, but pared gains after the U.S.
Federal Reserve held interest rates unchanged but left the door
ajar to a hike in June.
The U.S. central bank's policy-setting committee said the
labor market had improved further despite a recent economic
slowdown and that it was keeping a close eye on inflation.
Spot gold XAU= was up 0.3 percent at $1,246.65 an ounce at
2:44 p.m. EDT (1844 GMT).
U.S. gold futures for April delivery GCc1 settled up 0.6
percent at $1,249.20 an ounce prior to the Fed's statement.
The Fed had been widely expected to keep interest rates
steady this month, with focus resting squarely on the tone of
its statement and any hints on the timing of any future
increases. The U.S. central bank raised rates in December for
the first time in nearly a decade.
"By de-emphasizing global risks but acknowledging slower
growth, the FOMC executed an equivocal pirouette that keeps a
June/July move open but only just," said Tai Wong, director of
base and precious metals trading for BMO Capital Markets in New
York.
"Gold has traded in a choppy $10 range but ultimately the
FOMC has not impaired the constructive sentiment in gold and
silver."
Gold was firm ahead of the Fed statement, with data showing
orders for long-lasting U.S. manufactured goods rebounded far
less than expected in March.
"The Fed cited the moderation in consumption and softness in
exports and investment spending, which in our view positions
them to wait until September for enough signs that at least
consumption is turning firmer," said Avery Shenfeld, chief
economist for CIBC Capital Markets.
"Overall, not really much for markets to chew on in this,
with forecasters likely to stick to their guns on whatever they
were calling for prior to the statement."
Gold is highly sensitive to rising interest rates, which
lift the opportunity cost of holding non-yielding bullion while
boosting the dollar, in which it is priced.
A slump in demand from key Asian consumers is likely to push
gold prices lower in the short term, GFMS analysts at Thomson
Reuters said in a report on Tuesday.
Among other precious metals, silver XAG= rose 0.7 percent
to $17.28 an ounce, platinum added 1.3 percent to $1,020.99 and
palladium was up 1.5 percent at $609.71.
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