- Fed likely to hold rates steady on Wednesday
- U.S. nonfarm payrolls data due on Friday
- India's duty cut to revive gold demand, WGC says
July 30 (Reuters) - Gold prices held firm on Tuesday as investors braced for Federal Reserve's policy meeting and U.S. data that could offer more cues on the rate-cut timeline.
Spot gold was up 0.2% at $2,388.65 per ounce, as of 0635 GMT. U.S. gold futures rose 0.3% at $2,385.30.
The Fed is expected to hold rates steady at the end of its two-day meeting on Wednesday, but open the door to policy easing as early as September by acknowledging inflation has edged nearer to its 2% target.
Investors will also keep a tab on a series of employment data scheduled to be released this week, with the main focus on the nonfarm payrolls report due on Friday.
"The tone of the Fed meet and Friday's jobs report could pull the rug out from underneath the U.S. dollar if investors start to price in more rate cuts between now and year-end," said Tim Waterer, KCM Trade's chief market analyst.
"Any moves lower in the dollar would likely provide a boon to gold, which could again see levels north of $2,400."
Lower interest rates reduce the opportunity cost of holding the non-yielding bullion.
India's gold demand in the June quarter fell 5% from a year earlier, but consumption in the second half of 2024 should improve due to a correction in local price following a steep reduction in import taxes, the World Gold Council said.
Among other metals, spot silver gained 0.1% to $27.89 per ounce.
If silver prices stay above $25 for the rest of the year, it is unlikely that Indian imports will meaningfully pick up aside from surges on dips as seen in the past, analysts at Heraeus said in a note.
"This could result in a contraction in Indian jewellery and silverware fabrication demand for a second year in a row," analysts added.
Platinum rose 0.3% to $951.25 and palladium dipped 0.6% to $898.08.
Reporting by Ashitha Shivaprasad in Bengaluru; Editing by Subhranshu Sahu, Eileen Soreng and Sherry Jacob-Phillips
Source: Reuters