PRECIOUS-Gold prices ease on dollar uptick as Fed policy verdict looms

 PRECIOUS-Gold prices ease on dollar uptick as Fed policy verdict looms

(Adds comments, details and updates prices)

* Investors weigh chances of BoE hiking interest rates

* Gold to be supported if yields trade at current levels – analyst

* U.S manufacturing activity slows in October

Nov 2 (Reuters) – Gold prices eased on Tuesday, hurt by an uptick in the dollar as investors await a policy meeting of the U.S. central bank for clues to how it will fight growing inflationary pressures and worries over weaker economic growth.

Spot gold dipped 0.1% to $1,791.23 per ounce by 0406 GMT. U.S. gold futures dropped 0.2% to $1,791.80.

The dollar index edged up 0.1% after declining 0.3% on Monday, making gold less appealing to buyers holding other currencies.

Stephen Innes, managing partner at SPI Asset Management, expects gold to remain pressured in an environment of central bank tightening, with the Fed most likely to announce the start of stimulus tapering in Wednesday’s meeting.

Elevated price and wage increases may…

Read full article…www.reuters.com