(New throughout, updates prices with U.S. markets, adds analyst comment)

* Benchmark S&P 500, Nasdaq fall

* Fed to announce rates decision at 2 p.m. EDT (1800 GMT)

* U.S. yields pull back

* Dollar index drops

* Safe-haven gold gains

NEW YORK, July 26 (Reuters) - Global shares and U.S. yields edged lower on Wednesday as markets braced for what is expected to be the Federal Reserve's 11th consecutive hike in interest rates aimed to reining in rising consumer prices. Traders expect that the Fed will announce a 25 basis point hike in rates later on Tuesday, taking the benchmark overnight interest rate to between 5.25%-5.50% - the highest level since around the global financial crisis in 2007-2009.

"The market is expecting a hike, but more of what you're seeing is just a little pull back after a pretty strong run in the last couple of days," said Lamar Villere, portfolio manager at Villere & Co in New Orleans.

The MSCI world equity index, which tracks shares in nearly 50 countries, was down 1.41%. In Europe, stocks fell 0.55%, on track to snap a six-day winning run, with equities in Germany and France shedding 0.7% and 1.51% respectively.

On Wall Street, the benchmark S&P 500 and the tech-heavy Nasdaq were trading lower, dragged down by mostly technology stocks, while the Dow was mostly flat.

The Dow Jones Industrial Average rose 0.03% to 35,450.17, the S&P 500 lost 0.24%, to 4,556.32 and the Nasdaq Composite dropped 0.5% to 14,073.47. "Obviously everyone is going to be curious about what the Fed says about their future plans but our expectation is that this is probably the end of the hikes," Villere added.

U.S. Treasury yields slipped, ending gains in the two previous sessions, ahead of the Fed's rate decision. The yield on 10-year Treasury notes was down at 3.881%, while the two-year yield, which typically reflects interest rate expectations, fell to 4.8869%.

The dollar edged lower against major currencies. The dollar index fell 0.168%, with the euro up 0.17% to $1.1072.

Oil prices were choppy after U.S. crude inventories fell less than expected. Brent crude futures were up 0.05% at $83.68 a barrel, while U.S. West Texas Intermediate (WTI) crude fell 0.04% to $79.60. Gold prices gained buoyed by a pullback in the dollar and bond yields. Spot gold added 0.5% to $1,973.39 an ounce, while U.S. gold futures gained 0.21% to $1,966.20 an ounce.

(Reporting by Chibuike Oguh in New York; Editing by Chizu Nomiyama)