* Fed decision due at 1800 GMT
* U.S. dollar gains for fourth session
* Gold's technical picture remains bearish - analyst (Adds analyst comment, updates prices)
By Asha Sistla
March 17 (Reuters) - Gold prices edged up on Wednesday to hover below a two-week high hit in the last session, as markets waited for the conclusion of the U.S. Federal Reserve's two-day policy meeting for its outlook on the economy and interest rates.
Spot gold XAU= was up 0.3% at $1,736.23 per ounce by 0714 GMT, having touched a level unseen since March 1 at $1,740.90 on Tuesday. U.S. gold futures GCv1 were up 0.3% at $1,735.20.
"Prices have been consolidating because of the uncertainty about today's Fed announcement," said Hareesh V, head of commodity research at Geojit Financial Services.
"The Fed announcement and the $1.9 trillion financial package are the only two bullish aspects for gold. All other fundamentals are on the negative with the stronger dollar and yields."
The U.S. dollar gained for a fourth session, supported by elevated U.S. yields on expectations of a stronger economic recovery after a $1.9 trillion recovery package was signed into a law last week. US/ investors view gold as a hedge against higher inflation that could follow stimulus measures, but a resultant rise in Treasury yields have weighed on the non-yielding commodity.
"Gold's true test though will come once the FOMC meeting concludes and if it can remain steady in the face of another spike in U.S. yields, should that occur," said OANDA senior market analyst Jeffrey Halley.
The Fed is expected to announce its decision on interest rates at 1800 GMT. Investors will eye Fed policymakers' remarks on a recent spike in bond yields, fears about rising inflation and the economic outlook. the market awaits the Fed statement, the technical picture remains bearish, Avtar Sandu, a senior commodities manager at Phillip Futures, said in a note.
In other metals, silver XAG= was flat at $25.96 an ounce. Palladium XPD= fell 0.7% to $2,481.47, having hit a one-year high of $2,520.31 on Tuesday, and platinum XPT= eased 0.5% to $1,206.