Fed to cut rates twice this year, economists say
Nearterm outlook for gold remains constructive analyst
Spot gold may bounce to 2,432 technicals

July 24 Reuters Gold prices inched higher on Wednesday, with investors awaiting U.S. economic data that could influence the Federal Reserve39;s ratecut timeline.

Spot gold was up 0.3 at 2,416.39 per ounce, as of 0650 GMT. U.S. gold futures gained 0.4 to 2,416.10.

Investors expect key U.S. data releases this week, including the secondquarter gross domestic product GDP reading on Thursday and the June personal consumption expenditures PCE price index report on Friday.

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 Trade39;s chief market analyst.

But the nearterm 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 alltime high of 2,483.60 last week amid rising bets of rate cuts. Lower interest rates reduce the opportunity cost of holding nonyielding gold.

Spot gold may break resistance at 2,417 and bounce further to 2,432, according to Reuters technical analyst…