(Adds details, comments, updates prices as of 0620 GMT)

* Fed's interest rate decision due at 1800 GMT

* China's factory activity contracts in October - Caixin PMI

* Gold may fall into a range of $1,951-$1,964/ounce- technicals

Nov 1 (Reuters) - Gold started November on a softer note on Wednesday as investors awaited U.S. Federal Reserve's policy decision due later in the day, after concerns over the Middle East conflict boosted safe-haven bullion above $2,000 last month.

Spot gold fell 0.1% to $1,980.37 per ounce by 0620 GMT, while U.S. gold futures dropped 0.3% to $1,989.10.

Spot gold posted a 7.3% jump in October, with prices hitting an over five-month high of $2,009.29 last week.

Near term retracement of prices to $2,000 levels is not ruled out, after the sharp run-up due to geopolitical uncertainty with Israel-Hamas conflict, OCBC Executive Director and FX Strategist Christopher Wong said.

Israeli airstrikes hit a densely populated refugee camp in the Gaza Strip, killing at least 50 Palestinians and a Hamas commander.

"But looking beyond geopolitics, we could potentially be seeing an extended Fed pause - an eventual turn lower in yields should be supportive of gold prices," Wong added.

The Fed will conclude its two-day monetary policy meeting later on Wednesday.

"Although no change in the interest rates is expected, the focus will be on the Fed's assessment of the U.S. economy and clues to the monetary policy going forward," said Praveen Singh, associate vice president at BNP Paribas' Sharekhan.

Gold may fall into a range of $1,951-$1,964 per ounce, following its repeated failures to break a resistance at $2,010, according to Reuters technical analyst Wang Tao.

Meanwhile, Asia's manufacturers faced worsening pressure in October, with factory activity in China slipping back into decline, clouding recovery prospects for the region's major exporters already squeezed by weaker global demand and higher prices.

Spot silver dropped 1.1% to $22.66 per ounce, platinum slipped 0.6% to $928.07, while palladium rose 0.4% to $1,119.68. (Reporting by Anjana Anil and Swati Verma in Bengaluru; Editing by Rashmi Aich and Eileen Soreng)