June 18 (Reuters) - Gold prices held steady on

Wednesday, as escalating tensions between Israel and Iran

entered their sixth day, while a stronger dollar capped gains

ahead of the U.S. Federal Reserve's policy decision due later in

the day.

FUNDAMENTALS

* Spot gold was steady at $3,386.59 an ounce, as of

0052 GMT. U.S. gold futures were also stable at

$3,405.20.

* Iran and Israel launched new missile strikes at each other

on Wednesday as the air war between the two longtime enemies

entered a sixth day despite a call from U.S. President Donald

Trump for Iran's unconditional surrender.

* Trump warned on social media on Tuesday that U.S. patience

was wearing thin.

* Meanwhile, the U.S. is deploying more fighter aircraft to

the Middle East and extending the deployment of other warplanes,

three U.S. officials told Reuters.

* The U.S. dollar index strengthened against major

currencies, making dollar-priced bullion more expensive for

holders of other currencies.

* Federal Reserve officials met on Tuesday armed with new

economic data that could give more weight to their concerns that

Trump administration policies, or at least the intense

uncertainty around them, will slow growth in the coming months.

* U.S. retail sales dropped more than expected in May,

weighed down by a decline in motor vehicle purchases as a rush

to beat potential tariff-related price hikes ebbed, but consumer

spending remains supported by solid wage growth for now.

* The Fed is widely expected to leave its benchmark

overnight interest rate unchanged in the 4.25%-4.50% range.

* Investors will watch closely for Fed Chair Jerome Powell's

remarks following the decision for signals on the future

monetary policy path.

* Elsewhere, spot silver was down 0.3% at $37.14 per

ounce, platinum rose 0.2% to $1,264.63, while palladium

fell 0.4% to $1,047.50.

DATA/EVENTS (GMT)

0600 UK Core CPI, CPI YY May

0600 UK CPI Services MM, YY May

0900 EU HICP Final MM, YY May

1230 US Housing Starts Number May

1230 US Initial Jobless Clm 14 Jun, w/e