*

Fed expected to keep rates steady at its Jan. 28-29

meeting

*

U.S. dollar index up 0.3%

*

U.S., Colombia reach deal on deportations; tariffs put on

hold

(Adds graphic, updates as of mid-session trading)

By Rahul Paswan

Jan 27 (Reuters) - Gold dipped on Monday pressured by a

firmer dollar, while investors focussed on the Federal Reserve's

first meeting of 2025 for more guidance on the U.S. interest

rate path.

Spot gold dropped 0.6% to $2,755.80 per ounce, as of

0509 GMT, after trading just below record-high levels on Friday.

U.S. gold futures fell 0.7% to $2,760.70.

The dollar gained 0.3%, making gold expensive for

other currency holders.

"The U.S. dollar could be the main culprit for gold's

weakness... However, the current movement suggests that the

downside for the yellow metal is still limited, potentially

aided by safe-haven flows," IG market strategist Yeap Jun Rong

said.

The U.S. and Colombia pulled back from the brink of a trade

war, after the White House said the South American nation had

agreed to accept military aircraft carrying deported migrants.

Gold is considered a hedge against geopolitical turmoil and

inflation. It also tends to thrive in a low interest rate

environment as it yields no interest.

Fed policymakers are largely expected to keep rates steady

in their Jan. 28-29 meeting, marking the first pause in the

rate-cutting cycle that began in September.

"Market focus will likely be on how the Fed reacts to

comments from President Trump, who has called for continued

interest rate cuts," Reliance Securities' senior analyst Jigar

Trivedi said.

Data since the Fed's December meeting has kept intact the

core view among Fed officials that inflation will continue to

move steadily, if slowly, towards 2%, with a low unemployment

rate and continued hiring and economic growth.

COMEX gold speculators raised net long position by 21,864

contracts to 234,358 in the week to Jan. 21, data showed on

Friday.

Spot silver dropped 1.1% to $30.26 per ounce,

palladium dipped 1.8% to $969.93 and platinum fell

0.8% to 941.25.