Shafaq News/ Gold prices inched higher on Wednesday, with investors awaiting U.S. economic data that could influence the Federal Reserve's rate-cut timeline.
Spot gold was up 0.3% at $2,416.62 per ounce, as of 0402 GMT. U.S. gold futures gained 0.4% to $2,417.10.
Investors expect key U.S. data releases this week, including the second-quarter gross domestic product (GDP) reading on Thursday and the June personal consumption expenditures (PCE) price index number on Friday, to offer more cues about the rate-cut timeline.
"If either the GDP or core PCE figures produce an upside beat, this could provide a stumbling block for gold in the short term on dollar strength," said Tim Waterer, KCM Trade's chief market analyst.
But "the near-term outlook for gold remains constructive from a fundamental point of view, given that the Fed appears to be on the doorstep of a rate cut."
The Fed will cut interest rates just twice this year, in September and December, as resilient U.S. consumer demand warrants a cautious approach despite easing inflation, according to a growing majority of economists in a Reuters poll.
Bullion prices scaled an all-time high of $2,483.60 last week amid rising bets of rate cuts. Lower interest rates reduce the opportunity cost of holding non-yielding gold.
Spot gold may break resistance at $2,417 and bounce further to $2,432, according to Reuters technical analyst Wang Tao.
Meanwhile, India slashed import duties on gold and silver to 6% from 15%, which ANZ said should support jewellery manufacturing in the world's second-biggest consumer of bullion and add to an already favourable backdrop for demand.
"Growth estimates in photovoltaic panel usage have been markedly revised higher, resulting in silver demand draws far exceeding supply. A price squeeze within a few years is becoming more likely," Sprott Asset Management said in a report.
Platinum firmed 0.3% to $945.73 and palladium steadied at $925.64.
(Reuters)