Updates prices, adds comment from trader in paragraph 3

By Ashitha Shivaprasad

June 17 (Reuters) - Gold prices edged higher on Wednesday as investors awaited the U.S. central bank's first policy decision under new Chair Kevin Warsh, along with further details of the U.S.-Iran peace agreement for further direction.

Spot gold XAU= was up 0.3% at $4,344.47 per ounce by 11:09 a.m. EDT (1509 GMT). U.S. gold futures GCcv1 rose 0.2% at $4,364.70.

"Gold buyers may be betting on a dovish Warsh later today, grinding higher despite indifferent stocks, higher yields and a higher dollar," said Tai Wong, an independent metals trader.USD/ US/ .N

The Federal Reserve's rate decision, policy statement and updated policymaker projections will be released at 2 p.m. EDT (1800 GMT). Warsh, who replaced former Fed chief Jerome Powell last month, will hold a press conference half-an-hour later.

"Looking at the charts, prices may push higher toward $4,350 if $4,300 proves reliable support. Weakness below $4,300 could trigger a selloff back toward the $4250–$4200 per ounce support area," said Lukman Otunuga, senior research analyst at FXTM. FEDWATCH

Spot gold touched a near six-month low last week as inflation fears stoked by the Iran conflict boosted expectations of U.S. rate hikes. While gold is often seen as a hedge against inflation, elevated interest rates tend to pressure bullion, as it offers no yield. O/R

Prices rebounded after the U.S. and Iran agreed on a framework deal.

However, U.S. President Donald Trump said that the agreement reached this week with Iran was not final, and that he could resume a bombing campaign if he did not like it.

"Gold and silver could hit a cyclical low between late 2026 and early 2027. In our baseline scenario, gold could trade at an average of around $4,000 per ounce by the end of the year, whilst silver could settle at around $60," Intesa Sanpaolo economist Daniela Corsini said in a note.

Among other metals, spot silver XAG= gained 0.2% to $70.30 per ounce. Platinum XPT= lost 1.2% to $1,782.23 and palladium XPD= fell 0.2% at $1,349.36.