PRECIOUS-Gold off record highs as Fed's Powell signals smaller rate cuts

* Fed Powell hinted towards 25-bp cuts * Odds of 25-bp US rate cut next month rise to 63% - CME FedWatch * US job openings data due later in the day (Updates prices and graphics as of 0738 GMT) By Daksh Grover Oct 1 (Reuters) - Gold prices hovered below the record peak on Tuesday after the U.S. Federal Reserve Chair tempered expectations for more hefty interest rate cuts this year, with investors awaiting a series of labour data this week for further cues. Spot gold XAU= was 0.3% higher at $2,643.12 per ounce, as of 0738 GMT, off a record high of $2,685.42 hit on Thursday. U.S. gold futures GCcv1 rose 0.2% to $2,664.30. Fed Chair Jerome Powell on Monday suggested the central bank will likely pursue quarter-percentage-point interest rate cuts moving forward and was not "in a hurry" after new data boosted confidence in ongoing economic growth and consumer spending. "We have a series of Fed speakers ahead, but data-dependence from policymakers will likely be the common takeaway, which may leave sentiments more sensitive to economic data to move the dial around rate expectations," IG market strategist Yeap Jun Rong said. "Any weaker-than-expected read in the upcoming U.S. labour market data could support views for a more aggressive easing process, which could offer some support for gold prices." This week's data includes U.S. ADP employment figures and nonfarm payrolls, which are expected to shed light on the health of the labour market. Speeches from various Fed officials and U.S. job openings data are expected later in the day. According to the CME FedWatch tool, markets now estimate a roughly 63% likelihood of a 25-basis-point U.S. rate cut in November, up from 47% on Friday. Israel's widely expected ground invasion of Lebanon appeared to be getting underway early on Tuesday, as its military said troops had begun "limited" raids against Hezbollah targets in the border area. Lower interest rates reduce the opportunity cost of holding gold, which is also viewed as a safe asset during economic and political turmoil. The bullion posted its best quarterly gain since 2020 last quarter after the Fed kicked off its interest rate cutting cycle with a half percentage point move in September. After a significant price rally, factors that could curb gold's further gains include reduced central bank demand from easing geopolitical tensions, lower ETF inflows from less aggressive rate cuts, and a decline in China's retail demand, Goldman Sachs said on Monday. GOL/ETF Elsewhere, spot silver XAG= was up 0.5% to $31.31 per ounce, platinum XPT= gained nearly 1% to $985.65 and palladium XPD= shed 0.7% to $992.56. <^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^ Spot gold price in USD per oz https://reut.rs/3Y2gDPU ^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^> (Reporting by Daksh Grover and Swati Verma in Bengaluru; Editing by Alan Barona and Mrigank Dhaniwala) (([email protected]))