* Holdings in SPDR Gold Trust at seven-year peak
* Silver eases from multi-year high
* Interactive graphic tracking global spread of coronavirus: open https://tmsnrt.rs/3aIRuz7 in an external browser
By Eileen Soreng
July 29 (Reuters) - Gold eased on Wednesday as investors booked profits from a record run and caution set in as investors awaited the end of a U.S. Federal Reserve meeting expected to reinforce dovish policy to aid a virus-hit economy.
Spot gold XAU= was down by 0.1% at $1,956.39 per ounce by 1153 GMT. Prices hit a record $1,980.57 on Tuesday. U.S. gold futures GCcv1 rose 0.4% to $1,953.20 per ounce.
"When you're sitting on a very large profit, people want to take that," independent analyst Ross Norman said, adding the market was in a holding pattern ahead of the Fed's policy statement due at 2 pm EDT (1800 GMT). were also monitoring a political deadlock in the U.S. Congress over a $1 trillion aid plan. going to have to apply more stimulus in an economy struggling to get itself out of a hole and if they do increase monetary injection, it's going to be gold positive," Norman added.
Gold, considered a refuge against inflation and currency debasement following widespread stimulus, tends to benefit from low interest rates, which reduces the opportunity cost of holding the non-yielding metal.
Fed Chair Jerome Powell "may also comment on plans to anchor long-term interest rates at a low level by adjusting the forward guidance and possibly conducting yield curve control," Commerzbank (DE:CBKG) said in a note.
"This would cement the negative real interest rates, in which case new record highs for gold and an increase above $2,000 per troy ounce would only be a question of time."
Investors continued to pile into gold-backed exchange-traded funds, with holdings in the SPDR Gold Trust GLD at an over seven-year peak. also tracked moves in rival safe-haven the dollar .DXY , which lingered near a two-year low. USD/ XAG= fell 1.2% to $24.28 per ounce, platinum XPT= was little changed at $947.52 per ounce and palladium XPD= fell 1.4% to $2,250.75 per ounce.