PRECIOUS-Gold hemmed in tight range ahead of Fed verdict, Powell comments

* Fed interest rate decision due at 1800 GMT * Focus on Powell speech for rate-cut clues * Palladium down more than 1% (Updates prices) By Brijesh Patel March 20 (Reuters) - Gold prices were stuck in a tight range on Wednesday as traders prepared for a key policy decision from the U.S. Federal Reserve and remarks from Fed Chair Jerome Powell later in the day, which could shed more light on prospects of rate cuts this year. Spot gold XAU= was steady at $2,157.78 per ounce, as of 0752 GMT. U.S. gold futures GCcv1 were little changed at $2,160.80. Market focus will be on the Federal Open Market Committee's policy statement due at 1800 GMT and Powell's press conference at 1830 GMT. With the U.S. central bank expected to hold rates steady, traders are awaiting its economic and interest rate projections for the rest of the year. "There's a real chance that the Fed may not be as dovish as traders want to hear, and that the median dot plot could be revised from three to two, or even one Fed cut this year," City Index senior analyst Matt Simpson said. "And that could trigger a shakeout at these highs for gold and see it break below $2,050 if Powell disappoints doves. Yet, gold remains supported by a broad rise in commodities in general." Last week's U.S. consumer prices index and producer price index figures came in hotter than expected, reducing hopes for early and sharp rate cuts. Traders are currently pricing in an about 61% chance of a rate cut in June, according to the CME FedWatch Tool. Lower interest rates reduce the opportunity cost of holding non-yielding bullion. The dollar =USD held steady after hitting a more than two-week high in the previous session. A stronger dollar makes gold more expensive for other currency holders. USD/ Spot gold XAU= is biased to break a falling trendline per ounce and rise into the $2,175-$2,182 range, according to Reuters' technical analyst Wang Tao. TECH/C Elsewhere, spot silver XAG= eased 0.1% to $24.89 per ounce, platinum XPT= fell 0.7% to $888.50 and palladium XPD= slipped 1.1% to $980.29. <^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^ Spot gold price in USD per oz https://reut.rs/3TKdAd8 xau https://tmsnrt.rs/3Pp5VhO ^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^> (Reporting by Brijesh Patel in Bengaluru; Editing by Sherry Jacob-Phillips, Subhranshu Sahu and Mrigank Dhaniwala) (([email protected]; Within U.S. +1 651 848 5832, Outside U.S. +91 9590227221; Reuters Messaging: [email protected]))