* Gold, silver may be rangebound ahead of Fed meeting
* India shows strong appetite for physical silver
* Coming up: U.S. Fed chief Bernanke briefing; 1815 GMT
(Updates throughout with comment, detail, prices; previous
SINGAPORE)
By Amanda Cooper
LONDON, April 27 (Reuters) - Silver steadied on Wednesday,
after its largest one-day slide in over a month the previous
day, while gold profited from a weaker dollar which came under
pressure ahead of a U.S. Federal Reserve interest rate decision.
The Fed is not expected to signal any rush to scale back its
multi-billion dollar support mechanisms for the economy, so
investors are waiting to hear more on the outlook for monetary
policy from chairman Ben Bernanke when he gives the central
bank's first post-decision news conference later in the day.
[]
With the dollar under pressure and its inverse link to gold
strengthening for the first time in a week, the bullion price
was set for a second day of gains, although a string of public
holidays in the United Kingdom restricted volumes.
Spot gold <XAU=> was last up 0.4 percent at $1,506.90 an
ounce by 0940 GMT, about 0.8 percent below Monday's record high
at $1,518.10. U.S. futures for June delivery <GCv1> were last up
0.3 percent at $1,507.30.
"It's consolidation. Gold has done a bit better than silver
over the last couple of days, but we're still in a holiday
period here in London so trading volumes are not as high as
normal and I don't think there will be a huge move (ahead of the
Fed," said Mitsubishi analyst Matthew Turner.
"I don't think there's much outlook until after the press
conference," he said.
Gold could continue to draw strength from any weakness in
the dollar, particularly if the Fed maintains its accommodative
policy stance, in contrast with the European Central Bank, which
has raised rates as it attempts to curb inflation.
"The market is a bit mixed ahead of the Fed meeting, which
will influence the move of the dollar and precious metals," said
Peter Fung, head of dealing at Wing Fung Precious Metals based
in Hong Kong.
Silver steadied somewhat, following its largest one-day fall
in a month the previous day. The price is on track for a 21
percent gain this month and a 47-percent rise this year, making
it the top performing precious metal.
Dealers in Asia said strong physical demand was offering
some support to silver, although holdings of silver in the
world's largest exchange-traded funds staged their largest
one-day outflow in nearly two weeks by April 26. []
Spot silver <XAG=> was last flat at $45.48 an ounce, having
recovered from a 3-percent drop on Tuesday, its largest one-day
slide in six weeks.
U.S. silver <SIcv1> was last up 1 percent at $45.52.
Implied volatility in silver options has been at its highest
this week since November last year as the spot price has swung
from lows around $43 to highs above $49 in the space of a week.
"The recent sharp increase in volatility is an indication of
the increasing nervousness of market players and could be a sign
that the rally in the silver price is approaching an end," said
Commerzbank in a note.
In fundamental news for silver, MMTC, India's largest
bullion importer, plans to double its silver purchases this
fiscal year to 1,500 tonnes, to catch up with exploding
investment interest. []
Platinum <XPT=> was last up 0.4 percent at $1,804.49 an
ounce, while palladium <XPD=> was flat at $750.00.
(Additional reporting by Rujun Shen in Singapore; editing by
Jason Neely)
