* U.S. Fed policy statement due at 1800 GMT
* Gold hits near two-week low of $1,762/oz
* Palladium slips from record highs hit on Tuesday
(Updates prices)
By Eileen Soreng
April 28 (Reuters) - Gold prices hit a near two-week low on
Wednesday as investors awaited policy signals from the U.S.
Federal Reserve.
Spot gold fell 0.1% to $1,774.78 per ounce by 12:32
p.m. (1632 GMT), after dipping to its lowest since April 16 at
$1,762. U.S. gold futures fell 0.3% to $1,774.20.
"You're going to see the Fed affirm the dovish (stance) and
that should keep gold fairly stable," Edward Moya, senior market
analyst at OANDA, said of the price movement.
Fed Chairman Jerome Powell is expected to reaffirm easy
monetary policy will continue for a prolonged period.
"The marketplace will closely scrutinize the Fed's inflation
outlook and any comments on the future path of monetary policy,"
Kitco Metals senior analyst Jim Wyckoff said in a note.
While gold is considered a hedge against the inflation that
could follow widespread stimulus, elevated Treasury yields have
dulled non-yielding bullion's appeal this year.
Benchmark U.S. 10-year Treasury yields were steady, having
earlier jumped to a two-week high.
"If the Fed gives some direction to yields, there could be a
significant move for gold. Otherwise, expect gold to remain in
the $1,750-$1,800 range," Carlo Alberto De Casa, chief analyst
at ActivTrades, said.
Analysts have cut their gold price forecasts, with many
believing an economic recovery could impede the metal's return
to last year's record highs, a Reuters poll showed.
Goldman Sachs, however, sees gold at $2,000 an ounce over
the next six months and said it was too early for bitcoin to
compete with gold for safe-haven demand.
Elsewhere, palladium dipped 0.5% to $2,927.14 per
ounce, having hit an all-time high of $2,962.50 on Tuesday.
Silver fell 0.6% to $26.08 per ounce, after reaching
a low since April 21 at $25.80.
Platinum slipped 1.5% to $1,209.85 per ounce.
(Reporting by Eileen Soreng and Nallur Sethuraman in Bengaluru;
Editing by Emelia Sithole-Matarise and Alexander Smith)
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