PRECIOUS-Gold gains ahead of Fed; palladium hits record high

* U.S. Fed policy statement due at 1800 GMT
* Palladium hits record high of $1,824.50 an ounce
* Gold trend positive if prices hold above $1,460-$1,470-
analyst
* GRAPHIC-Plat/palladium ratio: http://tmsnrt.rs/1QjSZAC

(Updates prices)
By Asha Sistla
Oct 30 (Reuters) - Gold rose on Wednesday on expectations of
an interest rate cut by the U.S. Federal Reserve, but bullion
held a tight range as caution set in with investors awaiting
clarity on the central bank's future monetary policy.
Palladium hit an all-time high driven by short supplies of
the auto-catalyst metal.
Spot gold XAU= was up 0.5% to $1,494.16 per ounce at 01:36
p.m. EDT (1736 GMT). U.S. gold futures GCv1 settled 0.4%
higher at $1,496.70 an ounce.
The U.S. central bank is set to release a statement
following its two-day policy meeting, at 2 p.m. EDT (1800 GMT).
Investors expect the Fed to lower rates by a quarter of a
percentage point for a third time this year. FEDWATCH
"A 25-basis point cut is well expected. The main driver will
be the tone of (Fed Chair) Jerome Powell. He could signal a more
patient tone after cutting rates, a hawkish cut you'd say. That
could open some weakness in gold in the near term," said Ryan
McKay, a commodity strategist at TD Securities.
On the trade front, the first phase of a U.S.-China trade
agreement may not be ready to be signed in Chile next month,
although that does not indicate that the accord is falling
apart, a U.S. official said on Tuesday. MKTS/GLOB "There are still some landmines out there that could trigger
additional safe-haven into gold and it's not dead just yet,
although a bit weaker in the near term," McKay said.
Gold is considered a safe store of value during economic or
political uncertainty.
On the technical front, "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."
Palladium XPD= jumped nearly 2% to $1,815.78 per ounce,
after hitting a record high of $1,824.50 in the session.
"We've already hit peak bearishness on the auto sales and
palladium and the market was tight; if you're expecting it to
recover, it's only going to get tighter. On the margin, if the
industry as a whole is more optimistic, palladium and platinum
will get an additional bid," TD Securities' McKay said.
Chiefly used in vehicle exhausts to reduce harmful
emissions, platinum is favoured for diesel engines and palladium
is preferred for petroleum.
Tightening emissions regulations are putting more palladium
in each vehicle, supporting consumption even as weakening global
economic growth hits vehicle sales.
Silver XAG= edged 0.3% higher to $17.85 an ounce, while
platinum XPT= gained 0.3% to $922.93.