* Could slip to $1,750-$1,770 on Fed plans, analyst says
* U.S. dollar, treasury yields lower
* China slowdown could hit silver consumption - analyst
July 26 (Reuters) - Gold edged lower on Monday as investors
turned cautious in the run-up to a Federal Reserve policy
meeting, overshadowing some support from a weaker dollar.
Spot gold was down 0.2% at $1,798.41 per ounce by
13:56 p.m. EDT, while U.S. gold futures settled 0.1%
lower at $1,799.20.
The U.S. central bank will begin its two-day policy meeting
"The concern now is that we will get the first hints of not
necessarily a rate increase but what kind of reductions the Fed
envisions to its balance sheet, and that could be a trigger for
rates to move higher," said Edward Meir, analyst with ED&F Man
Meir, however, said that was unlikely to drive a sustained
fall in gold, with the metal drawing support from a dovish
European Central Bank, a currently accommodative Fed, large
fiscal stimulus and higher inflation.
Both the ECB and Fed have suggested they will keep monetary
policy accommodative for some time.
Yet Han Tan, market analyst at Exinity Group, said that if
the policy-setting Federal Open Market Committee provides more
details about tapering plans, gold could test the June lows of
Bullion's dip came despite a weaker dollar and a slight dip
in benchmark U.S. Treasury yields.
Elsewhere, silver rose 0.2% to $25.22 an ounce.
"You might have to wait for a bit for a breakout in silver,
said Phillip Streible, chief market strategist at Blue Line
Futures in Chicago.
"Silver relies a lot on infrastructure and the slowdown in
China might impact the technology that silver demands in order
to be consumed."
Floods in central China, especially in the industrial and
transport hub city of Zhengzhou, have raised concerns over
damage to the region's infrastructure.
Among other metals, platinum gained 0.8% to $1,070.11
an ounce and palladium was slightly up at $2,672.98.
(Reporting by Nakul Iyer, Arundhati Sarkar and Bharat Govind
Gautam in Bengaluru; Editing by Paul Simao and Pravin Char)