PRECIOUS-Gold steadies after sell-off as markets await US data

By Noel John

Nov 17 (Reuters) - Gold prices held steady on Monday, as investors awaited a raft of U.S. economic data this week for clues on the Federal Reserve's interest rate trajectory after prices fell more than 2% in the last session on reduced rate cut expectations.

Spot gold XAU= was steady at $4,078.44 per ounce as of 0859 GMT. U.S. gold futures GCcv1 for December delivery fell 0.4% to $4,080 per ounce.

Spot prices are stable as investors buying gold as a hedge against the current market uncertainty after prices fell last week offset some of the pressure from a firm U.S. dollar and reduced Fed rate cut expectations, said Carlo Alberto De Casa, external analyst at banking group Swissquote.

The dollar index .DXY extended gains for a second session against its rivals, making dollar-priced bullion expensive for other currency holders. USD/

Markets will zero in on a string of U.S. data this week for signs of economic strength, with the delayed September nonfarm payrolls report due on Thursday.

Meanwhile, odds of a U.S. rate cut in December have slipped below 50% after policymakers struck a cautious tone, weighing on gold.

Traders now see a 44% chance of a 25-basis-point rate cut in December, down from over 62% last week, CME FedWatch tool showed.

Safe-haven gold tends to thrive in a low-interest-rate environment as it is a non-yielding asset.

Gold has surged 56% this year, hitting a record $4,381.21 on October 20, driven by economic and geopolitical jitters, robust ETF inflows, and expectations of further rate cuts.

Gold could consolidate between $4,000/oz and $4,250/oz in the near term, with the low above $4,000 acting as a support, De Casa said.

SPDR Gold Trust GLD, the world's largest gold-backed exchange-traded fund, said its holdings fell 0.47% to 1,044.00 metric tons on Friday. GOL/ETF

Elsewhere, spot silver XAG= rose 0.8% to $50.96 per ounce, platinum XPT= gained 0.5% to $1,548.15 and palladium XPD= climbed 1.1% to $1,400.08.