PRECIOUS-Gold eases as dollar recovers; all eyes on Fed meeting

* Fed policy announcement Wednesday
* Platinum hits an over one-month high
* Palladium hits highest since March 31
* Interactive graphic tracking global spread of coronavirus:
open
https://tmsnrt.rs/3aIRuz7 in an external browser

(Updates prices)
By Sumita Layek
Sept 15 (Reuters) - Gold edged lower from a near-two week
high on Tuesday as the dollar rose, although hopes for a dovish
monetary policy stance from the U.S. Federal Reserve limited the
safe-haven metals' losses.
Spot gold XAU= was down 0.1% to $1,955.21 per ounce at
1:52 p.m. EDT (1752 GMT), after earlier climbing to its highest
since Sept. 2 at $1,971.71.
U.S. gold futures GCv1 settled up 0.1% at $1,966.20.
"The dollar bounced off the lows and we're seeing some
sell-off in gold, but this is temporary, dovish comments from
the Fed meeting and a further explanation on their new inflation
targets could push gold above $2,000," said Bob Haberkorn,
senior market strategist at RJO Futures.
The dollar index .DXY rose against rivals, making gold
more expensive for buyers holding other currencies. USD/
Investors are now awaiting a statement from the Fed's
two-day policy event, which ends on Wednesday.
"There is more optimism because investors are thinking the
low interest rates we have can continue for the next three-plus
years; that's very bullish for gold," said Michael Matousek,
head trader at U.S. Global Investors.
Meanwhile, a group of Democratic and Republican members of
U.S. Congress unveiled a $1.5 trillion bipartisan coronavirus
relief legislation, which they hoped would break a deadlock.
Unprecedented monetary stimulus and a low interest rate
environment have led bullion to gain 29% this year, as it is
seen as a hedge against inflation and currency debasement.
Elsewhere, silver XAG= rose 0.2% to $27.20 per ounce,
while palladium XPD= climbed 3.8% at $2,400.25, having hit its
highest since March 31 at $2,419.19.
Platinum XPT= rose 1.7% to $970.47, after hitting its
highest since Aug. 11 at $973.98.
Platinum could outperform gold by about 10%, if the World
Platinum Investment Council's forecasts for a supply deficit
come to pass and the gold-to-platinum ratio breaks out of the
2.02-2.20 range, said Saxo Bank analyst Ole Hansen.