* Spot gold may retest support at $1,744/oz - technicals
* Gold skewed to downside long-term as Fed normalizes policy
Sept 21 (Reuters) - Gold prices were subdued on Tuesday as
cautious investors braced for U.S. Federal Reserve's guidance on
tapering its assets and interest rate hikes, while risk-off
sentiment stoked by China Evergrande's debt crisis limited
losses in the safe-haven metal.
Bullion is considered as a hedge against inflation and
currency debasement likely to result from the widespread
stimulus. A hawkish move by the Fed would diminish gold's
appeal, while an eventual interest rate hike would also raise
the opportunity cost of holding the non-interest bearing asset.
Spot gold inched 0.2% lower to $1,760.80 per ounce by
0645 GMT, while U.S. gold futures were flat at $1,762.10.
"In the longer term, they're (gold prices) still skewed to
the downside because we're going to continue to see the Fed
wanting to push towards normalizing monetary policy, which
typically is not a good environment for gold," IG Market analyst
Kyle Rodda said.
The Fed is likely to provide an outlook on how soon and how
often they think the economy will need interest rate rises over
the next three years at their policy meeting on Wednesday.
Gold prices recovered on Monday from a more than one-month
low of $1,741.86 as concerns over the fallout from property
developer Evergrande's solvency issues spooked stock
markets worldwide and drove investors to safe-haven assets.
"Depending on how the Evergrande situation plays out with
markets, gold could continue finding safe-haven buyers, or
buying interest could evaporate ... particularly if the China
government soothes nerves when it returns to work tomorrow,"
Jeffrey Halley, a senior market analyst for Asia Pacific at
OANDA, said in a note.
On the technicals front, spot gold may retest a support at
$1,744, a break below could cause a fall into the $1,724-$1,736
range, according to Reuters technical analyst Wang Tao.
Silver edged 0.2% higher to $22.28 per ounce.
Palladium climbed 1.2% to $1,908.71, while platinum
gained 0.8% to $918.00.
(Reporting by Eileen Soreng in Bengaluru; Editing by Sherry
Jacob-Phillips and Rashmi Aich)