* Fed statement scheduled for 1900 GMT Wednesday
* Expected to hike U.S. interest rates
* Dollar down 0.2 pct, Asian stocks firm (Adds comment, updates prices)
By Swati Verma
BENGALURU, Dec 14 (Reuters) - Gold prices edged higher on Wednesday on a weaker dollar and as markets waited for the outcome of the U.S. Federal Reserve's policy meeting later in the day.
Spot gold XAU= was up 0.3 percent at $1,161.73 an ounce by 0633 GMT and U.S. gold futures GCcv1 were 0.4-percent higher at $1,163.70.
The dollar index .DXY , which measures the greenback against a basket of currencies, was down 0.2 percent at 100.88, having slipped from this week's high of 101.78 touched early on Monday. USD/
"(The rise in gold prices) is because of the weaker dollar and also the anticipation of what the Fed will decide," said Brian Lan, managing director at Singapore-based gold dealer GoldSilver Central.
"The things that will move the markets more would definitely be on how many times the Fed will raise interest rates next year."
The Fed is widely expected to increase U.S. interest rates at this week's Federal Open Market Committee meeting, with investors looking for clues on the central bank's views on further hikes in 2017.
Higher U.S. rates raise the opportunity cost of holding non-yielding bullion.
The outcome of the policy meeting will be announced at 1900 GMT, followed by Chair Janet Yellen's news conference half an hour later.
"A Fed rate hike has been 100 percent priced in, and the market expects that maybe Yellen's comments tonight on rate hike projections for the next year will not be too hawkish," said Helen Lau, an analyst at Argonaut Securities in Hong Kong.
"So that is the reason why dollar has weakened a little bit, and that's what is supporting gold prices."
Meanwhile, holdings of SPDR Gold Trust GLD , the world's largest gold-backed exchange-traded fund, are down over 9 pct since November. GOL/ETF
"People who invest in ETFs will have a relatively longer term view, so the current rotation is rotate out of gold to risky assets, expecting that the U.S. economic situation will improve," Lau said.
Asia shares crept cautiously higher on Wednesday and the two-year U.S. debt yield rose to a 6-1/2 year high on Tuesday. MKTS/GLOB US/
"ETF liquidation shows investors' uninspired gold view. Until the 'slow bleed' out of the ETFs ceases, it will be difficult for gold to rally," HSBC analyst James Steel wrote in a note.
Elsewhere, silver XAG= was up 0.7 percent at $17.02 per ounce after falling nearly 1 percent in the previous session.
Platinum XPT= rose 0.4 percent to $936 an ounce.
Palladium XPD= was unchanged at $728.80 an ounce, having risen about 1 percent on Tuesday.