PRECIOUS-Gold rises as focus turns to Fed policy decision

(Adds analyst comment, updates prices)
* U.S Fed policy statement due at 1900 GMT
* Economic recovery hopes to keep platinum supported
-analyst
* Interactive graphic tracking global spread of coronavirus:
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* https://tmsnrt.rs/3aIRuz7 in an external browser

By Asha Sistla
Dec 16 (Reuters) - Gold rose to a one-week high on Wednesday
on market hopes for further fiscal support for the U.S. economy
and expectations that the U.S. Federal Reserve will keep a lid
on interest rates.
Spot gold XAU= was up 0.2% at $1,857.21 an ounce by 1307
GMT after touching its highest since Dec. 9 at $1,865.50. U.S.
gold futures GCv1 rose 0.3% to $1,861.
"If we get a Brexit deal over the line, a stimulus deal in
the U.S. and the monetary stimulus package from the Fed this
week, which is extremely possible, that could put gold on a more
positive trajectory and take some volatility out of the markets
going into year-end," said OANDA analyst Craig Erlam.
U.S. congressional leaders were optimistic on Tuesday about
ending a months-long standoff on a coronavirus stimulus package.

Also on investors' radar is the Fed's policy statement at
1900 GMT. The central bank is widely expected to keep interest
rates pinned near zero. Gold benefits from its appeal as a hedge against inflation
that could result from the unprecedented stimulus unleashed in
2020.
"But if (the Fed) fails to deliver, we could be seeing gold
moving back towards November lows," OANDA's Erlam said.
Capping bullion's gains, European shares hit a 10-month peak
on hopes of vaccine rollouts across the world. .EU
In other precious metals, silver XAG= gained 2.3% to
$25.04 an ounce, platinum XPT= was up 0.4% to $1,040.24 after
hitting a more than one-week high of $1,050.50 while palladium
XPD= rose 0.4% to $2,326.99.
"Unless the current wave of infections derails the global
economy, recovering industrial production may further boost
silver and the PGMs (platinum group metals)," HSBC analyst James
Steel said in a note.