PRECIOUS-Gold prices held steady amid growing tariff war fears

Nov 28 (Reuters) - Gold prices were steady on Thursday, as investors digested a flurry of economic data in the previous session and evaluated the possibility of a tariff war sparked by U.S. President-elect Donald Trump's policies. FUNDAMENTALS * Spot gold XAU= was flat at $2,636.35 per ounce, as of 0013 GMT. * U.S. gold futures GCv1 fell 0.1% to $2,635.90. * Amid a wave of economic releases, Wednesday's spotlight was on Personal Consumption Expenditures price index that matched expectations, with a 0.2% monthly increase and a 2.3% annual rise. * Additionally, the U.S. gross domestic product growth for the third quarter held steady at 2.8%, according to Wednesday's updated estimate, though consumer spending saw a slight downward revision. * The Federal Reserve's struggle to bring inflation back to its 2% target, combined with the possibility of higher tariffs under the incoming Trump administration, may constrain the U.S. central bank's ability to implement interest rate cuts next year. * Meanwhile, Mexican President Claudia Sheinbaum warned of retaliation if Trump enforces a 25% tariff, citing potential U.S. job losses and higher consumer prices. * Gold is often regarded as a safe-haven investment during periods of economic or geopolitical instability, including trade wars. * According to the CME Group's FedWatch Tool, markets currently sees a 64.7% chances of a 25-basis-point rate cut by the U.S. Federal Reserve in December. * Trading is expected to be thin with U.S. markets closed on Thursday for Thanksgiving holiday. * SPDR Gold Trust GLD , the world's largest gold-backed exchange-traded fund, said its holdings fell 0.10% to 878.55 tonnes on Wednesday. GOL/ETF * Spot silver XAG= was slightly changed at $30.10 per ounce, platinum XPT= rose 0.3% to $929.43 and palladium XPD= added 0.4% to $975.78. (Reporting by Daksh Grover in Bengaluru; Editing by Rashmi Aich) (([email protected];))