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* Expected to raise interest rates
* Investors seek clues on policy outlook
* Dollar strengthens slightly
* Technical indicators suggest gold to fall
(Updates prices)
By Peter Hobson
LONDON, Sept 26 (Reuters) - Gold prices fell on Wednesday asthe dollar strengthened ahead of the results of a FederalReserve meeting later in the day that is expected to raise U.S.interest rates and hint at the outlook for future rateincreases.
Gold is sensitive to higher interest rates because they tendto boost the dollar, making gold more expensive for buyers withother currencies.
They also push up U.S. bond yields, reducing the attractionof non-yielding bullion.
A Fed rate hike - the third this year - in an announcementat 1800 GMT is anticipated and is therefore unlikely to shiftgold prices, said FOREX.com analyst Fawad Razaqzada.
Markets will instead be looking to the Fed's economic andinterest rate projections and a news conference by ChairmanJerome Powell for something to move gold from its recent tradingrange of $1,190-$1,210 an ounce.
"If the Fed appears more dovish than expected we may see abreak-out for gold," Razaqzada said, adding that without asurprise, gold was unlikely to move much.
"If we break (technical resistance at) $1,205-$1,215, at aminimum we could go to $1,240," he said.
Spot gold
U.S. gold futures
Gold has fallen more than 12 percent from an April high as avibrant U.S. economy, expectations of higher U.S. interest ratesand fears of a global trade war have caused the dollar to rally.
Investors looking for a safe place to park assets havepreferred the U.S. currency to bullion, undermining gold'straditional role as a safe haven, while speculators have rampedup bets that gold prices will fall.
The greenback was slightly stronger on Wednesday against abasket of major currencies and is up more than 5 percent sinceApril.
Analysts at Commerzbank said gold was stuck beneathtechnical resistance at its 55-day moving average around $1,208and its 4-month downtrend at $1,220.
They said prices would likely move lower and that theirlong-term outlook had become more negative since gold brokebelow its 2005-2018 uptrend line, now around $1,215.
In other precious metals, silver
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(Additional reporting by Vijaykumar Vedala in Bengaluru;Editing by Mark Potter and Emelia Sithole-Matarise) ((Peter.Hobson@thomsonreuters.com; +44 207 542 0083;))