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Ammon News - Gold prices inched higher on Wednesday, with investors awaiting U.S. economic data that could influence the Federal Reserve's rate-cut timeline.

Spot gold was up 0.3% at $2,416.62 per ounce, as of 0402 GMT. U.S. gold futures gained 0.4% to $2,417.10.

Investors expect key U.S. data releases this week, including the second-quarter gross domestic product (GDP) reading on Thursday and the June personal consumption expenditures (PCE) price index number on Friday, to offer more cues about the rate-cut timeline.

"If either the GDP or core PCE figures produce an upside beat, this could provide a stumbling block for gold in the short term on dollar strength," said Tim Waterer, KCM Trade's chief market analyst.

But "the near-term outlook for gold remains constructive from a fundamental point of view, given that the Fed appears to be on the doorstep of a rate cut."

The Fed will cut interest rates just twice this year, in September and December, as resilient U.S. consumer demand warrants a cautious approach despite easing inflation, according to a growing majority of economists in a Reuters poll.

Bullion prices scaled an all-time high of $2,483.60 last week amid rising bets of rate cuts. Lower interest rates reduce the opportunity cost of holding non-yielding gold.

Spot gold may break resistance at $2,417 and bounce further to $2,432, according to Reuters technical analyst Wang Tao.

Meanwhile, India slashed import duties on gold and silver to 6% from 15%, which ANZ said should support jewellery manufacturing in the world's second-biggest consumer of bullion and add to an already favourable backdrop for demand.

Spot silver rose 0.2% to $29.28 per ounce.

"Growth estimates in photovoltaic panel usage have been markedly revised higher, resulting in silver demand draws far exceeding supply. A price squeeze within a few years is becoming more likely," Sprott Asset Management said in a report.

Platinum firmed 0.3% to $945.73 and palladium steadied at $925.64.

Reuters