SINGAPORE, Oct 28 (Reuters) - Gold retained small overnight gains on Wednesday, but caution prevailed ahead of a Federal Reserve policy statement later in the session as investors waited for clues on the timing of a U.S. rate hike.
FUNDAMENTALS
* Spot gold XAU= was little changed at $1,165.81 an ounce by 0030 GMT. The metal had risen 0.3 percent in the previous session, snapping a four-day losing streak.
* Bullion was supported after data on Tuesday showed a second straight drop in a gauge of U.S. business investment in September and a decline in consumer confidence this month, hinting at economic weakness. urn:newsml:reuters.com:*:nL1N12R0Z6
* But gains in the metal were limited as the dollar rose. USD/
* Many investors also chose to stick to the sidelines ahead of a statement by the Fed on Wednesday following a two-day policy meeting.
* The U.S. central bank is not expected to raise rates on Wednesday, but markets will be eyeing the statement for the Fed's take on the U.S. and global economies, and whether it could hike rates at its next meeting in December.
* The Fed had refrained from raising rates last month, citing global concerns. Fed Chair Janet Yellen has since said the bank would still increase rates this year, though some other policymakers have said otherwise. urn:newsml:reuters.com:*:nL1N12N2MZ
* Bullion has been weighed by uncertainty over the timing of a rate hike. Ultra-low rates boost the appeal of non-interest-paying gold.
* In physical markets, China's net gold imports from main conduit Hong Kong jumped to a 10-month high in September, data showed on Tuesday, in a strong sign of recovering demand in the second half of the year. urn:newsml:reuters.com:*:nL3N12R3AM
* For the top stories on metals and other news, click TOP/MTL or GOL
MARKET NEWS
* Asian stocks slipped early on Wednesday, taking cues from an overnight decline on Wall Street, while a wait-and-see mood prevailed ahead of a policy statement from the Fed.
DATA AHEAD (GMT)
0700 Germany GfK consumer sentiment Nov
0700 Germany Import prices Sep
0745 France Consumer confidence Oct
1230 U.S. Trade data Sep
1800 Fed releases statement after policy meeting
PRICES AT 0030 GMT
Metal
Last
Change Pct chg
Spot gold
1165.81
-0.74
-0.06 Spot silver
15.87
0.03
0.19 Spot platinum
985.24
2.24
0.23 Spot palladium
674.22
-0.28
-0.04 Comex gold
1166
0.2
0.02 Comex silver
15.87
0.007
0.04
COMEX gold and silver contracts show the most active months