PRECIOUS-Gold prices rise as investors await Fed verdict

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

(Updates prices, adds comments and details)
By Sumita Layek
Oct 30 (Reuters) - Gold prices edged higher 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 anticipated rate cut.
Spot gold XAU= was up 0.2% at $1,490.23 an ounce by 1008
GMT. U.S. gold futures GCv1 edged 0.2% higher to $1,493.20.
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
"Prices are relatively rangebound ... If the Fed signals a
hawkish cut, that could spell more dollar strength in the near
term and could suppress gold prices", said Han Tan, market
analyst at FXTM.
"However, if the 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 for other currencies.
Supporting gold, a rally in global shares stalled on worries
that a Sino-U.S. first-stage trade deal 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," FXTM'S Tan
said.
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."
Investors also kept a close watch on Brexit developments,
where Britain is set to hold a December election after Prime
Minister Boris Johnson won approval from parliament for an early
ballot. Elsewhere, silver XAG= was steady at $17.80 an ounce,
while platinum XPT= was unchanged at $920 and palladium XPD=
was flat at $1,781.