PRECIOUS-Gold firms as investors await Fed verdict

* U.S. Fed policy statement due at 1800 GMT
* European shares edge lower

(Updates prices)
By Sumita Layek
Oct 30 (Reuters) - Gold prices rose on Wednesday, having
touched a one-week low in the previous session, as investors
awaited a decision by the U.S. Federal Reserve on a widely
expected rate cut.
Spot gold XAU= was up 0.4% at $1,493.94 an ounce by 1207
GMT. U.S. gold futures GCv1 edged 0.3% higher to $1,495.40.
The U.S. central bank is set to share the statement of a
two-day monetary policy meeting at 1800 GMT. Investors expect
the Fed to lower rates by a quarter of a percentage point for a
third time this year. FEDWATCH
"If the Fed signals a hawkish cut, that could spell more
dollar strength in the near term and could suppress gold
prices," said FXTM market analyst Han Tan.
"However, if Fed Chair Jerome Powell still has cognisance of
the downside risks to the U.S. economy, of the economic
headwinds, and he believes the door is wide open for more rate
cuts going to 2020, then you could see some dollar weakness in
the near term."
A weaker greenback makes dollar-denominated gold cheaper for
holders of other currencies.
Supporting gold, a rally in global shares stalled on worries
that a Phase 1 trade deal between the United States and China
could be delayed, after a U.S. administration official said an
agreement might not be completed in time for signing in Chile
next month. MKTS/GLOB "The demand for bullion will remain intact because the
'Phase 1' trade deal doesn't dismantle existing tariffs ... so,
given the deteriorating economic conditions and the swelling
concerns over the global economic outlook, safe-haven assets
like gold will remain supported going into 2020," said FXTM'S
Tan.
Data released on Tuesday showed U.S. consumer confidence
fell for a third straight month in October, further helping
gold. Technically, "we would have a first bearish signal only
below $1,480, while a rebound above $1,500 could open space for
another recovery to $1,520", ActivTrades' chief analyst Carlo
Alberto De Casa said in a note.
"As long as prices can remain above $1,460-$1,470, the main
trend remains positive, despite the recent weakness," he added.
Investors also kept a close watch on Brexit developments,
with Britain set to hold a December election after Prime
Minister Boris Johnson won approval from parliament for an early
ballot. Elsewhere, silver XAG= rose 0.8% to $17.94 an ounce,
platinum XPT= was up 0.2% at $922.02 and palladium XPD=
gained 0.4% to $1,788.26.