PRECIOUS-Gold slips as dollar, bond yields firm after Fed official comment

March 28 (Reuters) – Gold prices eased on Thursday as the US dollar and bond yields ticked higher after comments from a Federal Reserve official on interest rate cuts, while investors looked forward to more economic data for policy clues.

FUNDAMENTALS

* Spot gold XAU= was down 0.2% at $2,189.29 per ounce, as of 0139 GMT.

* US gold futures GCcv1 edged 0.1% lower to $2,188.30 per ounce.

* Fed Governor Christopher Waller said on Wednesday recently disappointing inflation data affirms the case for the US central bank holding off on cutting its short-term interest rate target.

* The dollar =USD was up 0.1% against its rivals, making gold more expensive for other currency holders, while yields on 10-year Treasury notes US10YT=RR also rose. US/

* Investors now look forward to the US core personal consumption expenditure (PCE) price index report due on Friday to gauge when the Fed may start cutting interest rates.

* The PCE price index was seen rising 0.3% in February, which would keep the annual pace at 2.8%. Also on the investor radar is the weekly US initial jobless claims report due later in the day.

* Traders are pricing in a 62% probability that the Fed will begin cutting rates in June, down from a 70% chance seen on Wednesday, according to the CME Group’s FedWatch Tool. Lower interest rates reduce the opportunity cost of holding bullion.

* India’s gold imports are set to plunge by more than 90% in March from the previous month to hit the lowest level since the COVID pandemic, as banks cut imports after record-high prices hit demand.

* Spot silver XAG= slipped 0.4% to $24.56 per ounce, platinum XPT= rose 0.4% to $897.10 and palladium XPD= gained 0.4% to $987.66.