Gold holds steady as investors await key US economic data

By Anmol Choubey

Sept 25 (Reuters) - Gold prices were little changed on Thursday with a slightly weaker dollar lending some support, while investors awaited key U.S. economic data for further insights into the Federal Reserve's policy path.

Spot gold XAU= was up 0.1% at $3,739.22 per ounce, as of 0557 GMT. U.S. gold futures GCcv1 for December delivery were unchanged at $3,769.60.

Safe-haven bullion, which tends to thrive in a low-interest-rate environment, had hit a record high of $3,790.82 on Tuesday.

The U.S. dollar index .DXY fell 0.1%, making greenback-priced bullion less expensive for overseas buyers. USD/

"The move (gold's rise) may reflect expectations that the Fed intends to run the U.S. economy hot as it rebalances its focus to the labour market," said Ilya Spivak, head of global macro at Tastylive.

"Initial support levels line up around $3,700 and $3,600. Breaking resistance at the latest high near $3,790 might expose $3,870-$3,875, followed by $4,000."

On Wednesday, San Francisco Federal Reserve Bank President Mary Daly said she "fully supported" the Fed's decision to cut its policy rate last week and expects further reductions ahead.

Investors are awaiting the personal consumption expenditures (PCE) price index report, the Fed's preferred inflation measure, on Friday.

The report is expected to show a month-on-month rise of 0.3% for August and 2.7% year-on-year increase, according to a Reuters poll.

"I don't think the inflation data will significantly impact (gold) unless it's exceptionally high," GoldSilver Central MD Brian Lan said.

"In our quantitative view of the market, the longer term is still very much bullish."

Weekly U.S. jobless claims data, due later on Thursday, may provide insights into labour market conditions.

Spot silver XAG= was up 0.1% at $43.95 per ounce, platinum XPT= gained 0.2% at $1,474.90 and palladium XPD= fell 0.6% to $1,203.86.

Reuters Terminal users can see related news and prices by clicking on the codes in brackets:
All precious metals headlines           GOL
Precious metals market reports          GOL/
European gold prices                    GOLD/EU1GOLD/EU20#PREC
London Bullion Market Association       LBMA01
New York Comex gold 0#GC: and silver  0#SI:
New York platinum 0#PL: and palladium 0#PA: