PRECIOUS-Gold firms in run-up to Fed decision

* Fed decision due at 1800 GMT
* U.S. dollar gains for fourth session
* Gold's technical picture remains bearish - analyst

(Adds analyst comment, updates prices)
By Asha Sistla
March 17 (Reuters) - Gold prices edged up on Wednesday to
hover below a two-week high hit in the last session, as markets
waited for the conclusion of the U.S. Federal Reserve's two-day
policy meeting for its outlook on the economy and interest
rates.
Spot gold XAU= was up 0.3% at $1,736.23 per ounce by 0714
GMT, having touched a level unseen since March 1 at $1,740.90 on
Tuesday. U.S. gold futures GCv1 were up 0.3% at $1,735.20.
"Prices have been consolidating because of the uncertainty
about today's Fed announcement," said Hareesh V, head of
commodity research at Geojit Financial Services.
"The Fed announcement and the $1.9 trillion financial
package are the only two bullish aspects for gold. All other
fundamentals are on the negative with the stronger dollar and
yields."
The U.S. dollar gained for a fourth session, supported by
elevated U.S. yields on expectations of a stronger economic
recovery after a $1.9 trillion recovery package was signed into
a law last week. US/ Some investors view gold as a hedge against higher inflation
that could follow stimulus measures, but a resultant rise in
Treasury yields have weighed on the non-yielding commodity.
"Gold's true test though will come once the FOMC meeting
concludes and if it can remain steady in the face of another
spike in U.S. yields, should that occur," said OANDA senior
market analyst Jeffrey Halley.
The Fed is expected to announce its decision on interest
rates at 1800 GMT. Investors will eye Fed policymakers' remarks
on a recent spike in bond yields, fears about rising inflation
and the economic outlook. While the market awaits the Fed statement, the technical
picture remains bearish, Avtar Sandu, a senior commodities
manager at Phillip Futures, said in a note.
In other metals, silver XAG= was flat at $25.96 an ounce.
Palladium XPD= fell 0.7% to $2,481.47, having hit a one-year
high of $2,520.31 on Tuesday, and platinum XPT= eased 0.5% to
$1,206.