* Stocks attempt rebound from Evergrande-led sell-off
* Firmer gold price likely if selling resumes, analyst says
* Federal Reserve concludes two-day meeting on Wednesday
Sept 21 (Reuters) - Gold rose on Tuesday, helped by a weaker
dollar, while investors were focused on the start of a two-day
Federal Reserve policy meeting that could provide clues on the
timeline for tapering of the central bank's support for the U.S.
Spot gold was up 0.5% at $1,772.96 per ounce by 1255
GMT, while U.S. gold futures were up 0.5% to $1,772.50.
"The big question that needs to be answered is will the
current market uncertainty change any prospective timeline that
the Fed might have when it comes to announcing its tapering of
asset purchases," said Michael Hewson, chief market analyst at
CMC Markets UK.
That, more than anything, is likely to put downward pressure
on gold, Hewson added.
The Fed will release a policy statement and new economic
projections at the end of its policy meeting on Wednesday. Some
analysts believe it could announce the start of the tapering of
its asset purchases in the fourth quarter, pushing gold lower.
Reduced central bank stimulus and interest rate hikes tend
to lift bond yields, raising the opportunity cost of holding
non-interest bearing gold. It would also help boost the dollar,
further weighing on bullion.
Offering some respite to gold, the U.S. dollar
slipped 0.2% after hitting near a one-month peak in the previous
World stocks stabilised and investors grew more confident
that contagion from debt-laden Chinese developer Evergrande
would be limited.
Fawad Razaqzada, analyst with ThinkMarkets, also said, with
uncertainty over the stock markets remaining elevated despite
Tuesday's rebound, it is not unreasonable to expect some
safe-haven flows into gold "amid risk of contagion from the debt
However, the gains have so far been very limited, he added.
Silver rose 1.4% to $22.56 per ounce, platinum
climbed 2.5% to $933.8, and palladium gained 2% to
(Reporting by Arundhati Sarkar in Bengaluru; editing by Mark
Potter, Jason Neely and Paul Simao)