PRECIOUS-Gold edges lower on Fed stimulus uncertainty

* Bernanke mum on stimulus; gold remains directionless
* Precious group's short-term outlook seen somewhat lower
-analyst
* Coming up: U.S. housing starts, June; 1230 GMT

(Updates prices)
By Rujun Shen
SINGAPORE, July 18 (Reuters) - Gold edged lower on
Wednesday, extending losses from the previous session when the
U.S. Federal Reserve Chairman Ben Bernanke disappointed gold
bugs by offering no signs of imminent monetary stimulus
measures.
The central bank chief reiterated the stance that the Fed
was prepared to take further action should the economic
conditions worsen, but offered few hints on the timing of such
action.
Gold over the past few months has been especially sensitive
to Fed headlines as investors expect further easing to boost
bullion, seen as a hedge against a rising inflation outlook due
to rampant cash printing.
"We suspect that the short-term outlook for the precious
group will be somewhat lower from here," said Ed Meir, an
analyst at INTL FCStone in a research note.
"While easing may be expected, investors are still saddled
with the uncertainty of not knowing exactly when such an order
will be given."
Spot gold edged down 0.2 percent to $1,580.02 an
ounce by 0643 GMT, after losing about half a percent on Tuesday.
Gold has gained about 1 percent so far this year, after
posting a 10-percent rise in 2011 on safe-haven flow as
investors fretted about the euro zone debt crisis and a U.S.
debt ceiling crisis.
U.S. gold futures contract for August delivery lost
0.6 percent to $1,579.90.
Technical analysis suggested that spot gold will be trading
sideways between $1,571.16 and $1,599 an ounce during the day,
said Reuters market analyst Wang Tao.

Bernanke will address the House Financial Services Committee
later on Wednesday.
His Tuesday's testimony could be seen to suggest that fiscal
policymakers need to do more to help the economic recovery as
effectiveness of monetary policy is weakening, said Jeremy
Friesen, commodity strategist at Societe Generale in Hong Kong.
"Our view is that the monetary policy is kind of at its end
right now. What will be needed to make it more effective is that
fiscal issues need to be dealt with," he said.
"Monetary policy will still be part of the equation and we
are definitely still on a loosening cycle."
Market participants have been worrying about the so-called
"fiscal cliff", referring to sharp spending cuts and tax hikes
that are scheduled to take place at the start of next year if
the Bush-era tax cuts expire without congressional action.
Bernanke told lawmakers it was essential to find a way to
avoid the fiscal cliff, warning it could tip the already weak
economy into a recession.
Precious metals prices 0643 GMT
Metal Last Change Pct chg YTD pct chg Volume
Spot Gold 1580.02 -2.87 -0.18 1.04
Spot Silver 27.20 -0.11 -0.40 -1.77
Spot Platinum 1406.05 -6.90 -0.49 0.94
Spot Palladium 579.75 0.22 +0.04 -11.15
COMEX GOLD AUG2 1579.90 -9.60 -0.60 0.84 14372
COMEX SILVER SEP2 27.18 -0.14 -0.52 -2.65 2176
Euro/Dollar 1.2276
Dollar/Yen 78.99
COMEX gold and silver contracts show the most active months

(Editing by Himani Sarkar)