* Fed rate decision due from 1800 GMT on Wednesday

* Investors seeking clues on Fed policy outlook

* European, Japanese central banks also meet this week

* Little reaction from U.S.-N.Korea agreement

(Updates prices)

By Peter Hobson

LONDON, June 12 (Reuters) - Gold prices remained locked justbelow $1,300 an ounce on Tuesday as investors waited for clueson the pace of U.S. interest rate rises from a Federal Reservemeeting this week.

A Fed statement and press conference expected from 1800 GMTon Wednesday could push gold out of the tight range of about$1,290 to $1,305, in which it has been trapped since mid-May.

Gold is highly sensitive to interest rates because higherrates push up bond yields, making non-yielding gold lessattractive, and tend to strengthen the dollar, increasing thecost of gold for buyers using other currencies.

Investors expect the Fed to increase rates on Wednesday butwill be looking for hints at future policy. A more aggressivestance on monetary tightening would hurt gold. urn:newsml:reuters.com:*:nL1N1TD1NR

"We are waiting for the FOMC," said Saxo Bank analyst OleHansen, referring to the Fed's policy committee.

Gold prices have tended to fall ahead of previous rate risesbut recover afterwards, he said. "We're still erring towards thepotential for a move higher here."

For a graphic click here: https://reut.rs/2JG84BA

Spot gold XAU= fell by 0.2 percent to $1,297.31 an ounceby 1328 GMT, while U.S. gold futures GCcv1 for August deliverydropped 0.2 percent to $1,301.10.

U.S. bond yields had edged higher and the dollar was flatagainst a basket of major currencies. .DXY USD/ US/

Adding to the wait-and-see mood were expectations that theEuropean Central Bank will signal a winding down of its vastbond-buying programme at a meeting on Thursday. This would belikely to help gold by boosting the euro and weakening thedollar.

Japan's central bank will also meet on June 14-15.

Gold did not react strongly to a pledge by the leaders ofthe United States and North Korea to work towards completedenuclearisation of the Korean peninsula. urn:newsml:reuters.com:*:nL4N1TD4MR

The joint statement signed at the end of a summit inSingapore gave few details on how that goal would be achieved.

Gold is traditionally used as a safe place to invest duringtimes of uncertainty, and growing tensions over Korea have addedto demand.

In other precious metals, silver XAG= was down 0.2 percentat $16.85 an ounce after hitting a seven-week high of $16.95 onMonday.

Platinum XPT= rose by 0.2 percent to $905.60 and palladium XPD= dipped by 0.1 percent to $1,020.72.

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^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^> (Additional reporting by Karen Rodrigues and Swati Verma inBengaluruEditing Susan Fenton and David Goodman) ((K.Rodrigues@thomsonreuters.com; Within U.S. +1 651 848 5832,Outside U.S. +91 80 6749 9229; Reuters Messaging:K.Rodrigues.thomsonreuters.com@reuters.net))