RPT-PRECIOUS-Gold rises to six-week high as dollar drops after Fed statement

 (Repeats to fix technical glitch)
    * Dollar index at 13-month low
    * Spot gold may break resistance at $1,264/oz -technicals
    * Silver hits highest since June 29

    By Nithin ThomasPrasad
    BENGALURU, July 27 (Reuters) - Gold rose for a second day on
Thursday, hitting a six-week high as the dollar dropped to a
13-month low after the U.S. Federal Reserve indicated it would
keep to a slow path of monetary tightening. 
    The Fed's statement followed a two-day policy meeting that
ended on Wednesday where the central bank kept interest rates
unchanged but expected to start winding down its massive
holdings of bonds "relatively soon".             
    The decline in the greenback is a boon for
dollar-denominated gold since it makes buying the metal less
expensive for investors paying in other currencies.
    "We think that gold has turned something of a corner and may
now be in a position to retest its recent highs," said INTL
FCStone analyst Edward Meir.
    "With the Fed now likely on hold at least till the end of
the year and U.S. bond yields falling, there are some forming
tailwinds that should propel prices higher over the short term,"
Meir said.
    Spot gold        had climbed 0.2 percent to $1,262.78 per
ounce at 0630 GMT. It reached $1,264.90 an ounce earlier in the
session, its highest since June 15.
    U.S. gold futures         for August delivery advanced 1.1
percent to $1,262.50 per ounce.
    On Thursday, the dollar index       , a measure of the
greenback against a basket of six major currencies, was at a
13-month low, while U.S. Treasury prices gained after the Fed's
policy statement was perceived to be dovish.            
    "Investors have gradually priced in the whole event and
considering that the Fed sees the near-term risk of the economy
is neutral, I don't think the market will expect a third rate
hike in the foreseeable future or at least in this quarter,"
said Mark To, head of research at Hong Kong's Wing Fung
Financial Group. 
    "So, gold investors have reason to be bullish just a little
    Gold is sensitive to rising U.S. interest rates, as these
increase the opportunity cost of holding non-yielding bullion,
while boosting the greenback, in which it is priced.
    Spot gold may break resistance at $1,264 per ounce and rise
more to the next resistance at $1,271, according to Reuters
technical analyst, Wang Tao.                      
    Meanwhile, holdings at the SPDR Gold Trust      , the
world's largest gold-backed exchange-traded fund, fell 0.63
percent to 795.42 tonnes on Wednesday from 800.45 tonnes on
    In other precious metals, silver        rose 0.5 percent to
$16.70 per ounce, after hitting its highest since June 29
earlier in the session. 
    Platinum        dropped 0.1 percent to $928.00 per ounce,
while palladium        gained 0.3 percent to $868.00 per ounce.

 (Reporting by Nithin Prasad and Arpan Varghese in Bengaluru;
Editing by Joseph Radford and Christian Schmollinger)