PRECIOUS-Gold subdued as traders await US jobs data for cues on rate cuts

By Brijesh Patel

July 2 (Reuters) - Gold prices inched lower on Wednesday as investors held back from placing big bets ahead of U.S. jobs data that is expected to shed more light on the Federal Reserve's policy path.

Spot gold XAU= was down 0.2% at $3,333.45 per ounce at 0901 GMT. U.S. gold futures GCcv1 were 0.2% lower at $3,344.10.

"Market participants have not adjusted their expectations of more rate cuts this year in the U.S. in recent weeks," said Giovanni Staunovo, an analyst at UBS.

"We still think debt level concerns, ongoing pressure on the Fed to adjust their rates and weaker U.S. economic data will support the price of gold."

Data on Tuesday showed U.S. job openings unexpectedly increased in May, but a decline in hiring added to signs that the labour market has shifted into lower gear.

Fed Chair Jerome Powell reiterated that the U.S. central bank plans to "wait and learn more" about the impact of tariffs on inflation before lowering rates, again setting aside U.S. President Donald Trump's demands for immediate and deep rate cuts.

Focus now shifts to U.S. ADP employment data due later in the day, followed by June non-farm payroll figures on Thursday for further insights into labour market conditions.

"We now believe that it will take either a regional war in the Middle East (low probability) or a large interest rate cut by the Fed for gold to break through the last historical high of $3,500/oz reached in April," analysts at BMI said in a note.

Meanwhile, U.S. Senate Republicans narrowly passed Trump's tax and spending bill on Tuesday, a package cutting taxes, reducing social safety net programmes, and boosting military spending, while adding $3.3 trillion to the national debt.

Elsewhere, spot silver XAG= gained 0.2% to $36.12 per ounce, platinum XPT= rose 0.5% to $1,356.96, while palladium XPD= climbed 0.5% to $1,105.68.