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Dollar index up 0.2% against its rivals

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Focus on U.S. PCE data due on Friday

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SPDR Gold Trust fell 0.6% on Tuesday

(Updates prices)

By Brijesh Patel

March 27 (Reuters) - Gold prices were flat in

range-bound trade on Wednesday as the dollar ticked higher, with

cautious investors awaiting more cues on the U.S. Federal

Reserve's monetary policy direction.

Spot gold was steady at $2,179.33 per ounce, as of

0747 GMT. U.S. gold futures were little changed at

$2,178.50.

The dollar index strengthened 0.1% against its

rivals, making gold more expensive for other currency holders.

Gold prices have risen more than 5% so far this year and

hit a record high last week, helped by increasing bets for Fed

easing, persistent safe-haven demand and central bank purchases

amid geopolitical tensions.

"It's difficult to construct an overly bearish case for

gold prices with the current backdrop of geopolitics and

potential central easing," City Index senior analyst Matt

Simpson said.

The Fed left its funds rate on hold between 5.25% and

5.5% last week and retained projections for three cuts by

2024-end.

Chicago Fed President Austan Goolsbee said on Monday that he

pencilled in three rate cuts for this year at the Fed's policy

meeting.

Investors now look forward to U.S. core personal consumption

expenditure price index data due on Friday to gauge when the Fed

may begin cutting interest rates.

Traders are pricing in a 72% probability that the Fed will

begin cutting rates in June, according to the CME Group's

FedWatch Tool. Lower interest rates reduce the opportunity cost

of holding bullion.

SPDR Gold Trust, the world's largest gold-backed

exchange-traded fund, said its holdings fell 0.62% to 830.15

tons on Tuesday.

"Aligned with the supported yet more sideways price action,

open interest figures show that most of the early March inflows

into gold have so far stuck," JP Morgan said in a note.

Spot silver was flat at $24.44 per ounce, platinum

gained 0.2% to $905.05 and palladium fell 0.5% to

$988.81.