PRECIOUS-Gold pauses as investors await confirmation on Fed stance

* Silver eases from multi-year peak
* Gold up more than 28% so far this year
* Interactive graphic tracking global spread of coronavirus:
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(Recasts, updates prices)
By Brijesh Patel
July 29 (Reuters) - Gold was little changed on Wednesday,
having retreated from an all-time high as investors booked
profits, with caution setting in as focus turned to a U.S.
Federal Reserve meeting widely expected to reinforce loose
monetary policy.
Spot gold XAU= was steady at $1,959.04 per ounce by 0723
GMT. Prices hit an all-time high of $1,980.57 on Tuesday. U.S.
gold futures GCcv1 rose 0.1% to $1,958.20.
"As we get closer to the Fed announcement and the event
risk, the market will get a bit more wary," said DailyFx
currency strategist Ilya Spivak.
Gold is closely following moves in the dollar as well,
Spivak added.
The dollar index resumed its downtrend after a brief pause
to hold near its lowest level since June 2018 touched this week
.DXY . A weaker dollar, also considered a rival safe haven,
makes gold cheaper for holders of others currencies. USD/
Coronavirus cases continued to surge in the United States
and stood at over 16.6 million globally. Its intensifying spread and an escalation in U.S.-China
tensions have dented hopes of quick economic recovery, and have
been driving inflows to safe-haven assets like gold, which has
risen more than 28% so far this year.
The Fed will publish its interest rate decision at 1800 GMT,
widely expected to keep rates unchanged, following which Chair
Jerome Powell is scheduled to hold a press conference.
"I expect the Fed to maintain its uber-dovish tone and this
will support precious metals prices," said Jeffrey Halley, a
senior market analyst at OANDA.
Gold tends to gain when interest rates are low, which
reduces the opportunity cost of holding non-yielding bullion.
It's also considered a hedge against inflation and currency
debasement as central bank pump out stimulus.
Republicans in the White House and the U.S. Congress
struggled to reach a deal over a $1 trillion aid plan.
Elsewhere, silver XAG= dropped 1.1% to $24.31 per ounce,
platinum XPT= fell 1.1% to $937.93 and palladium XPD=
slipped 1.1% to $2,257.49.