Sept 17 (Reuters) - Gold slipped on Wednesday as investors locked in profits after prices scaled the $3,700-mark in the previous session, with the spotlight now on the Federal Reserve's looming policy verdict.
Spot gold was down 0.1% at $3,685.39 per ounce, as of 10:49 am EDT (1449 GMT), after hitting a record high of $3,702.95 on Tuesday.
U.S. gold futures for December delivery dropped 0.1% to $3,720.70.
The U.S. dollar inched up after retreating in the previous session. A firmer dollar makes greenback-priced gold less appealing to holders of other currencies.
Gold is seeing "some profit-taking pressure from recent gains ahead of the FOMC meeting... Overall fundamentals and technicals remain firmly bullish for gold," said Jim Wyckoff, senior analyst at Kitco Metals.
"The next upside price target for gold is $3,800 and then a major upside price target down the road would be $4,000."
The most politically charged Fed meeting in years wraps up at 2 p.m. EDT, followed by Chair Jerome Powell's speech. Markets are pricing in a quarter-point rate cut.
Focus will also be on whether officials debated a deeper 50-bps cut, as U.S. President Donald Trump's economic overhaul drive raises fresh questions about the central bank's independence.
Gold often gains appeal when interest rates fall, as lower yields reduce the opportunity cost of holding the non-yielding asset.
Deutsche Bank, while raising its gold price forecast, said even though bullion has screened as rich versus fair value, this is largely driven by strong official demand, which is expected to persist.
Elsewhere, in key hub India, supplies of used gold jewellery and coins, typically released when investors book profits, have been scarce, as many expect prices to continue climbing.
Spot silver slipped 1.3% to $42 per ounce, platinum was down 1.3% at $1,372.26 and palladium fell 1.5% to $1,158.88.
Reporting by Ashitha Shivaprasad and Anushree Mukherjee in Bengaluru; Editing by Shreya Biswas
