* Uncertainty on further action by the Fed, ECB * Spot gold may fall to $1,599/oz - technicals * Coming up: U.S. Fed policy decision; 1815 GMT (Updates prices) By Rujun Shen SINGAPORE, Aug 1 (Reuters) - Gold was locked in a tight range on Wednesday, as investors awaited monetary policy decisions from the U.S. Federal Reserve and the European Central Bank, which will determine the direction of markets. If the Fed decided to launch another round of quantitative easing, the move would polish gold's appeal as an inflation hedge, since rampant cash printing could ultimately drive up prices. But the latest data showed U.S. home prices rose for the fourth month in a row in May, suggesting the recovery in the housing market continued to gain traction, dampening hopes of any imminent easing from the Fed. The European Central Bank's policy meeting on Thursday will also be in the spotlight, especially after its President Mario Draghi vowed last week to do everything possible to hold the euro zone together. "The ECB is the major source of uncertainty," said Nick Trevethan, senior metals strategist at ANZ in Singapore. "The focus is whether Draghi has promised action without ensuring support from the members of the ECB governing council." Germany's finance ministry reiterated its view that there was no need to grant a banking licence to the bloc's rescue fund, triggering doubts over the ECB's ability to take bold action to shore up the region's sagging economy. "Where is the will within Europe to sort the problem out rather than just kicking it down the road? The market needs to see action," Trevethan said. Spot gold was little changed at $1,613.84 an ounce by 0549 GMT, after finishing July up nearly 1 percent for its second straight month of gains. The U.S. gold futures contract for December delivery gained half a percent to $1,617.70. China's official factory purchasing managers' index fell to an eight-month low of 50.1 in July from 50.2 in June, suggesting the sector is barely growing. A separate survey showed the contraction in China's factory activity eased in July. Precious metals showed little reaction to the Chinese data, as the central bank actions in Europe and the United States take on paramount importance. Asia's physical gold market was also sluggish as market participants awaited clearer direction on prices. "People are on the sidelines, waiting for the Fed," said a Hong Kong-based dealer, adding that trading volumes across markets were low. Spot silver rose to $28.37 in the previous session, its highest in nearly four weeks. The metal, which has both precious appeal and industrial uses, inched up 0.3 percent to $28. Precious metals prices 0549 GMT Metal Last Change Pct chg YTD pct chg Volume Spot Gold 1613.84 0.55 +0.03 3.20 Spot Silver 28.00 0.09 +0.32 1.12 Spot Platinum 1410.99 0.69 +0.05 1.29 Spot Palladium 586.72 0.89 +0.15 -10.08 COMEX GOLD DEC2 1617.70 7.20 +0.45 3.25 202 COMEX SILVER SEP2 27.97 0.05 +0.18 0.18 3700 Euro/Dollar 1.2308 Dollar/Yen 78.13 COMEX gold and silver contracts show the most active months

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