PRECIOUS-Gold steadies as investors await US Fed rate decision

Jan 29 (Reuters) - Gold prices were stable on Wednesday, recovering slightly after a tech-driven market selloff, as uncertainty over U.S. tariffs spurred safe-haven demand, while focus shifted to the Federal Reserve's meeting conclusion due later in the day.

FUNDAMENTALS

* Spot gold held its ground at $2,765.35 per ounce, as of 0108 GMT. U.S. gold futures added 0.2% to $2,772.10.

* Bullion fell more than 1% on Monday, marking its steepest drop since Dec. 18, spurred by DeepSeek's low-cost AI model. The sharp declines in global equity markets in the previous session prompted risk-averse moves across other asset classes.

* In a speech on Monday, Trump said he would impose tariffs on aluminium and copper as well as steel, to entice producers to make them in the United States.

* Bullion typically acts as a safe-haven asset during times of uncertainty and trade wars.

* Trump's policies are also perceived as inflationary, which could lead the Fed to keep higher rates for longer, and diminish gold's appeal as an inflation hedge.

* Investors are now focused on the Fed's first policy meeting of the year, as Chinese markets remain closed for the Lunar New Year holidays.

* The Fed started its two-day meeting on Tuesday and is expected to keep rates steady after 100 basis points of easing from September to December.

* However, Trump may complicate the central bank's job, after he said last week that he wants the Fed to lower borrowing costs.

* U.S. rate futures are pricing in almost 50 basis points of cuts this year, or two 25 bp reductions starting in June.

* Spot silver was up 0.1% at $30.43 per ounce, palladium dropped 0.3% to $952 and platinum fell 0.2% to 940.10.

(Reporting by Rahul Paswan in Bengaluru; Editing by Sherry Jacob-Phillips)