PRECIOUS-Gold inches down as dollar climbs higher; Fed meet in focus

* SPDR Gold holdings jumped 0.8% on Monday
* Spot gold remains neutral in $1,412-$1,427/oz range- techs
* Investors keep an eye on guidance for future Fed cuts

(Updates prices)
By Harshith Aranya
July 30 (Reuters) - Gold prices ticked down on Tuesday as
the dollar rose to a two-month high, while investors awaited the
outcome of a two-day U.S. Federal Reserve policy meeting
expected to result in a cut in interest rates.
Spot gold XAU= was down 0.1% at $1,425 per ounce as of
0743 GMT.
U.S. gold futures GCv1 rose 0.3% to $1,425.10 an ounce.
"Liquidity is still thin as traders seem to be holding back
before the Fed gives its views on monetary policy," said
Benjamin Lu, an analyst at Phillip Futures, adding that a firm
dollar was putting pressure on gold prices.
"We are also looking at the tone of the Fed speech and how
many more cuts are expected. Financial markets are expecting two
more cuts in the second half ... Overall, we are quite bullish
on gold," Lu added.
The U.S. Fed begins its policy meeting on Tuesday, at which
it is widely expected to lower interest rates by 25 basis points
(bps). If implemented, it would be the central bank's first rate
cut in a decade.
Meanwhile, the dollar .DXY hit a two-month high on
Tuesday, as expectations of aggressive Fed rate cuts waned. A
stronger dollar makes gold costlier for holders of other
currencies. USD/
"No one doubts that a (Fed) rate cut will be in store for us
this time around," INTL FCStone analyst Edward Meir said in a
note.
However, "the giddy expectation prevalent at the beginning
of the month calling for a series of cuts that could follow this
one move, could be something that we think will be walked back
slightly."
The Bank of Japan kept its monetary settings steady on
Tuesday but said it would ease "without hesitation" if the
economy loses momentum for achieving the central bank's 2%
inflation target. Also on investors' radar was the U.S. and China trade
negotiations due to begin in Shanghai on Tuesday, although
expectations for progress during the two-day meeting are low.
On the technical side, spot gold remains neutral in a range
of $1,412-$1,427 per ounce, and an escape could suggest a
direction, according to Reuters technical analyst Wang Tao.

Holdings of SPDR Gold Trust GLD , the world's largest
gold-backed exchange-traded fund, rose 0.83% to 824.89 tonnes on
Monday from Friday. GOL/ETF
Among other precious metals, silver XAG= was steady at
$16.45 per ounce, while platinum XPT= edged 0.1% higher, to
$879.55.
Palladium XPD= eased 0.1% to $1,552.58 per ounce, after
touching a near two-week high in the previous session.

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