Jan 31 (Reuters) - Gold prices were on track for their
first monthly decline in four as investors toned down their
estimate of rapid and deeper rate cuts in the U.S. on the face
of a resilient economy, and awaited remarks from the Federal
Reserve due later in the day.
FUNDAMENTALS
* Spot gold was flat at $2,035.09 per ounce by 0141
GMT on Wednesday, after touching a two-week high of $2048.12 in
the previous session.
* Spot prices have dropped 1.3% so far this month.
* U.S. gold futures rose 0.2% to $2,034.60.
* Traders priced in about 130 basis points (bps) of Fed rate
cuts for this year, down from bets of more than 160 bps at the
end of 2023, according to LSEG's interest rate probability app
IRPR.
* Money market pricing shows that the chances of a March
rate cut have dropped to 43%, from about 90% a month ago.
* The dollar index was on track to mark its best
month since September, with an over 2% gain so far in January.
* Yields on benchmark U.S. Treasury notes were
at a two-week low of 4.0261%, but still higher than the year-end
close of 3.8600%.
* Market focus will shift to Fed's statement at the end of
its two-day policy meeting at 1900 GMT, where it is expected to
leave rates unchanged, which is followed by a news conference by
Chair Jerome Powell at 1930 GMT.
* Data on Tuesday showed that U.S. job openings unexpectedly
rose in December while U.S. consumer confidence increased to a
two-year high in January.
* Spot silver fell 0.2% lower to $23.12 per ounce,
platinum was steady at $920.57, and palladium
edged 0.1% lower to $975.49. All three were also poised for a
monthly decline.
DATA/EVENTS (GMT)
0130 China NBS Manufacturing PMI Jan
0500 Japan Housing Starts Dec
0700 UK Nationwide house price Jan
0745 France CPI Prelim Jan
0830 Hong Kong GDP Advance Q4
0855 Germany Unemployment rate Jan
1300 Germany CPI Prelim Jan
1315 US ADP National Employment Jan
1330 US Employment Costs Q4
1330 Canada GDP MM Nov
1445 US Chicago PMI Jan
1900 US Fed Funds Tgt Rate --
1930 US Fed's Powell speaks --
(Reporting by Harshit Verma in Bengaluru; Editing by Sherry
Jacob-Phillips)