PRECIOUS-Gold inches higher as dollar softens, focus shifts to US economic data

June 26 (Reuters) - Gold prices nudged higher on Thursday, supported by a softer dollar, as investors looked ahead to upcoming U.S. economic data for hints on the Federal Reserve's potential direction on interest rates.

FUNDAMENTALS

Spot gold XAU= was up 0.1% at $3,334.80 per ounce, as of 0007 GMT.

U.S. gold futures GCcv1 rose 0.2% to $3,348.70.

The dollar .DXY was down 0.2% against its rivals, making greenback-priced bullion less expensive for overseas buyers. USD/

U.S. President Donald Trump said on Wednesday he would likely seek a commitment from Iran to end its nuclear ambitions at talks next week and credited U.S. strikes on Iran with bringing a swift end to the war between Israel and Tehran.

Anxious Iranians and Israelis sought to resume normal life after 12 days of the most intense confrontation between the two longtime foes, following a ceasefire that took effect on Tuesday.

Meanwhile, Federal Reserve Chair Jerome Powell told a U.S. Senate panel on Wednesday that while Trump's tariffs may cause a one-time price hike, the risk of persistent inflation is significant enough for the central bank to be cautious about further rate cuts.

Markets are awaiting U.S. GDP data due later in the day and Personal Consumption Expenditures (PCE) data on Friday.

Investors are currently anticipating 64 basis points worth of Fed rate cuts by the end of this year. USDIRPR

Bullion tends to do well during periods of uncertainty and in a low-interest-rate environment.

Spot silver XAG= was steady at $36.33 per ounce, platinum XPT= firmed 0.9% to $1,366.28, while palladium XPD= was up 1.3% at $1,071.40.

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