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Fed's Daly says cenbank likely on track for more rate cuts

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Gold industry sees prices rising to $2,941/oz over 12

months

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Benchmark 10-year note yields slipped to over a week low

(Adds details, comments and updates prices)

By Daksh Grover

Oct 16 (Reuters) - Gold prices extended gains to a

second session on Wednesday, driven by weaker equities and bond

yields, while traders eagerly await U.S. economic data to gauge

the Federal Reserve's timeline on a potential rate reduction.

Spot gold was up 0.6% at $2,676.63 per ounce, as of

0832 GMT, and trading nearly $9 below a record high of $2,685.42

scaled last month. U.S. gold futures gained 0.5% to

$2,693.30.

"Seems the gold market wants to see a record high, with

prices marginally below the late-September record high with

support coming from a slightly risk-off environment with

equities down," UBS analyst Giovanni Staunovo said.

Safe-haven bullion tends to be a preferred investment in a

low interest rate environment and during economic and

geopolitical turmoil.

"The uncertainly surrounding U.S. elections and geopolitical

tensions will also support gold going forward," said ANZ

commodity strategist Soni Kumari.

The benchmark 10-year note yields slipped to

over one-week low, making non-yielding gold more attractive.

Market participants are keeping a keen eye on U.S. retail

sales, industrial production and weekly jobless claims data, due

on Thursday.

Gold needs a stronger-than-expected data to change the

rate-cut trajectory, but this should still boost investment

demand and drive prices to a record high in the coming months,

UBS' Staunovo said.

San Francisco Federal Reserve Bank President Mary Daly said

the central bank remains on track for more cuts this year as

long as data meets expectations.

Delegates to the London Bullion Market Association's annual

gathering predicted gold prices would rise to $2,941 over the

next 12 months and silver prices would jump to $45 per ounce.

Spot silver firmed 1.1% to $31.82. Platinum

rose 1.4% to $997.45 and palladium climbed nearly 1% to

$1,018.00.

The Guangzhou Futures Exchange (GFEX) will launch platinum

and palladium futures in Q1 2025, according to producers'

council.