* Equities decline after U.S. data; oil, euro also slip
* SPDR gold ETF holdings hit record 1,313.135 T * Coming up: U.S. Fed interest rates announcement, 1815 GMT
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By Jan Harvey
LONDON, June 23 (Reuters) - Gold fell more than 1 percent on Wednesday, pressured by dollar strength and caught up in selling of other assets as equity markets slipped after disappointing U.S. home sales data and oil and the euro also declined.
Traders are now awaiting an interest rates announcement from the U.S. Federal Reserve later in the day. The bank is expected to keep rates on hold near zero, but the accompanying statement will be closely watched for clues as to future policy.
Spot gold <XAU=> was bid at $1,230.75 an ounce at 1508 GMT, against $1,239.00 late in New York on Tuesday, having slipped to a one-week session low at 1,224.30 an ounce.
U.S. gold futures for August delivery <GCQ0> fell $8.80 to $1,232.00 an ounce.
"There is (weakness) not just across commodities but across all markets," said RBS analyst Daniel Major. "In terms of gold, there is a slightly more risk-off tone today which seems to have resulted in dollar strength and... that has weighed on gold."
The usual inverse relationship between gold and the dollar, which weakened at the beginning of the year as both rose on risk aversion, seems to be being re-established, he said.
The dollar rose 0.2 percent versus the euro <EUR=> on Wednesday and climbed by a similar amount against a basket of six other currencies.
U.S. stocks dropped meanwhile after data showed new home sales fell by far more than expected, while Europeans shares also extended losses. [
] [ ]Sales of new U.S. homes dropped a record 32.7 percent in May to the lowest level in at least four decades as the boost from a popular tax credit faded, adding to worries of a slowing economic recovery. [
]Oil prices also fell by more than $2 towards $75 a barrel after U.S. industry data showed a surprise jump in crude and gasoline stocks, and investors looked to government figures later in the day for confirmation. [
]
FED EYED
Traders are now looking forward to the Fed interest rates decision at 1815 GMT, and the policy statement that will follow.
"The accompanying statement by the U.S. central bank is eagerly awaited," said Commerzbank in a note. "Should interest rates be kept at a low level long term, the U.S. dollar could come under pressure and this could generally support gold."
Gold also benefits from persistently low interest rates, because they keep down the opportunity cost of holding non-interest bearing assets such as bullion.
Elsewhere investment in gold ETFs climbed on Tuesday, with the SPDR gold ETF noting a five-tonne rise in its holdings to record highs at 1,313.135 tonnes. [
]In a note, Erste Bank forecast significant further upside for gold on the back of its appeal as a haven from risk and as protection from future inflation and currency market volatility. It said gold could reach $2,300 an ounce in the long term.
"In periods where black swans (unexpected crises) are no singular occurrences but are practically coming in flocks, the status of gold as a safe haven has yet again proven its worth," the bank said.
"Gold has always been a seismograph for the health of the financial and monetary system, as well as inflation. Although the focus is currently on the euro zone, the turbulence should not distract from the problems in the U.S. and Great Britain."
Among other precious metals, silver fell to $18.44 from $18.74, platinum <XPT=> was at $1,560 an ounce versus $1,582.50, and palladium <XPD=> at $471.23 against $481.50.
(Reporting by Jan Harvey; Editing by Keiron Henderson)