PRECIOUS-Gold steady as markets await Fed clues on rate outlook

* Spot gold neutral in $1,488-$1,523.61/oz range -
technicals
* Gold may test towards $1,455 if Fed disappoints - analyst

(Updates prices)
By Eileen Soreng
Sept 17 (Reuters) - Gold prices were little changed on
Tuesday as traders largely remained on the sidelines, awaiting a
widely expected cut to interest rates by the U.S. Federal
Reserve this week and a steer on its longer-term plans.
Spot gold XAU= eased slightly, dipping by 0.1% to
$1,495.74 an ounce by 0730 GMT, having risen as much as 1% in
the previous session on tensions in the Middle East.
U.S. gold futures GCv1 were down 0.4% at $1,505.6.
"The market is searching for a new catalyst ... The 25 basis
point rate cut is relatively priced in already, but what traders
are really looking for is forward guidance," said Phillip
Futures analyst Benjamin Lu.
A quarter-point cut to U.S. interest rates is widely
expected when the Fed issues its next policy statement on
Wednesday. It would be the central bank's second such cut after
lowering rates in July for the first time since 2008. FEDWATCH
A press conference by Fed Chair Jerome Powell is scheduled
to follow the release of the central bank's statement.
The Fed's language and new economic projections will be
examined closely, given the backdrop of a bruising U.S.-China
trade war, stimulus by the European Central Bank and a stream of
weak manufacturing data that hints at larger potential problems
for the United States.
"If the Fed goes against market expectations, there is a
strong possibility that we may see a short-term reversal (in
gold prices) and a quick sharp test towards $1,455," Lu said.
Attacks on Saudi Arabia's main oil refinery at the weekend
have also entered the equation, prompting U.S. President Donald
Trump to apply more pressure on the Fed to lower interest rates.
"It appears conviction remains positive so long as gold
hangs around $1,500," AxiTrader strategist Stephen Innes said in
a note, adding that the market has been caught between hedging
against a possible U.S. military response on Iran and
position-squaring ahead of the Fed's two-day meeting.
Meanwhile, currencies of oil-exporting countries held firm
and the U.S. dollar found broad support as the attacks on Saudi
oil facilities and the threat of military action in the region
buoyed crude prices. USD/ MKTS/GLOB
On Monday Trump said it looked like Iran was behind the
attacks but emphasised that he did not want to go to war.
On the technical front, spot gold looked neutral in a range
of $1,488-$1,523.61, an escape from which could suggest a
direction, according to Reuters technical analyst Wang Tao.
Elsewhere, silver XAG= fell 0.3% to $17.79 an ounce,
platinum XPT= dipped 0.4% to $932.81 and palladium XPD= was
down 0.5% at $1,596.49 after touching a record high of $1,626.81
in the previous session.