PRECIOUS-Gold inches up after two-day fall, Fed eyed
SINGAPORE, June 19 (Reuters) - Gold edged up on Wednesday after a two-day drop, but investors remained cautious as they looked to the end of a Federal Reserve policy meeting for clues on the outlook for U.S. economic stimulus.
* Spot gold was up 0.06 percent at $1,368.59 an ounce by 0013 GMT, hovering around a nearly one-month low of $1,364.54 touched on Tuesday. U.S. gold rose about $2.
* The metal fell more than 1 percent in the previous session as U.S. equities rallied and as bullion buyers took to the sidelines before the conclusion of a two-day Fed meeting that began on Tuesday.
* A policy statement from the central bank will be released on Wednesday and investors are awaiting guidance on whether the Fed plans to scale back its $85 billion monthly bond purchases.
A winding down, which the markets fear will begin soon due to strong U.S. economic data, would hurt gold - typically seen as a hedge against inflation.
* U.S. inflation showed signs of stabilizing in May, suggesting that a worrisome downward trend in core inflation, which began a year ago, might be coming to an end as consumer demand strengthens.
* Indian gold futures edged up on Tuesday to their highest in nearly a week, helped by a weaker rupee, but demand remained dull following a hike in import duty.
* Holdings in SPDR Gold Trust, the world's largest gold-backed exchange-traded fund, fell 0.2 percent to 1,001.67 tonnes on Tuesday - their lowest in more than four years.
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* The U.S. dollar added to gains on Wednesday, while the Nikkei share average rose more than 2 percent.
DATA/EVENTS (GMT) 1800 FOMC announces decision on interest rates 1830 Fed chairman Bernanke holds press conference 2330 Japan Reuters Tankan DI June
Precious metals prices 0013 GMT
Metal Last Change Pct chg YTD pct chg Volume Spot Gold 1368.59 0.80 +0.06 -18.27 Spot Silver 21.68 0.04 +0.18 -28.40 Spot Platinum 1435.50 -4.50 -0.31 -6.48 Spot Palladium 707.22 -0.78 -0.11 2.20 COMEX GOLD AUG3 1368.50 1.60 +0.12 -18.34 1041
COMEX SILVER JUL3 --
Euro/Dollar 1.3390 Dollar/Yen 95.49
(Reporting by A. Ananthalakshmi; Editing by Joseph Radford)