PRECIOUS-Gold up on lower yields as investors await big Fed rate hike move

    * Dollar steady near recent two-decade peak
    * Fed announcement on rates expected at 1800 GMT
    * Gold to break below $1,800/oz over next few weeks -

 (Updates prices)
    By Bharat Gautam
    June 15 (Reuters) - Gold prices on Wednesday were lifted
from near one-month lows by weaker Treasury yields, ahead of a
potentially aggressive interest rate hike from the U.S. Federal
Reserve as it seeks to combat inflation amid mounting fears of
an impending recession. 
    Spot gold        was up 0.4% at $1,815.89 per ounce as of
0535 GMT, after dropping to its lowest since May 16 at $1,803.90
on Tuesday. U.S. gold futures        rose 0.1% to $1,815.20.
    The Federal Open Market Committee is expected to announce
its decision on interest rates at 1800 GMT later in the day. 
    "In our opinion it is more likely to expect the gold price
to rally before the session (Fed announcement), stay stable and
then over the course of the following week continue its downward
trend," said Michael Langford, director at corporate advisory
    Investors have dramatically raised their bets that the Fed
will raise interest rates by 75 basis points (bps) rather than
50 bps, a swing in expectations which has fuelled a violent
selloff across world markets.                  
    Rising short-term U.S. interest rates and bond yields
increase the opportunity cost of holding bullion, which yields
no interest. 
    Benchmark U.S. 10-year Treasury yields eased from a
multi-year peak, supporting gold.       
    "Over the next few weeks in our opinion the overall downward
trend in the gold price will be maintained with gold breaking
below $1,800/oz," Langford said.     
    Asian markets were in a pensive mood as shell-shocked
investors waited to see just how aggressive the Fed would be on
rates, with many fearing drastic action would risk tipping the
world into recession.             
    The dollar        steadied near the previous session's
two-decade high, making greenback-priced bullion less attractive
for buyers holding other currencies.        
    Spot silver        gained 0.5% to $21.18 per ounce, while
platinum        rose 0.9% to $927.17, and palladium       
firmed 0.6% to $1,825.94. 

 (Reporting by Bharat Govind Gautam in Bengaluru; Editing by
Rashmi Aich and Shailesh Kuber)