PRECIOUS-Gold firms on risks posed by Trump's imminent policies

* US nonfarm payrolls report due on Friday * Softness in U.S. data could open door for gains - analyst (Updates with mid-session trading) By Anushree Mukherjee Jan 8 (Reuters) - Gold held steady on Wednesday as concerns over President-elect Donald Trump's potential tariffs offset pressure from a stronger dollar and Treasury yields, while investors awaited U.S. economic data for guidance on the Federal Reserve's interest rate stance in 2025. Spot gold XAU= was little changed at $2,646.88 per ounce, as of 1220 GMT. U.S. gold futures GCcv1 were down 0.2% to $2,660.00. The risk of a Trump trade war, sticky inflation and worries about fiscal stability as U.S. Treasury yields rise are themes that are potentially risk strengthening, which will support gold, said Ole Hansen, head of commodity strategy at Saxo Bank. Trump will be sworn in as president of the United States on Jan. 20. His proposed tariffs and protectionist trade policies are expected to be inflationary and could spark trade wars, adding to gold's allure as a safe-haven asset. Gold is also used as a hedge against inflation, although higher interest rates reduce the appeal of holding non-yielding bullion. The dollar .DXY pushed higher, while yield on the 10-year U.S. Treasury Note US10YT=RR also rose. The market awaits ADP employment numbers and minutes from the Fed's December meeting, both due later in the day, along with U.S. nonfarm payrolls report due on Friday, which could provide insight into the Fed's policy direction. Data on Tuesday showed U.S. job openings increased in November, while hiring softened, implying a slower labour market that might not need Fed to be in a rush to cut rates. "Any softness in the U.S. macro data this week could open the door for gains if investors become more optimistic about the deliverance of interest rate cuts from the Fed in 2025," analysts at KCM Trade said in a note. Following three rate cuts in 2024, the Fed in December forecasted only two rate cuts for 2025. Currently, markets anticipate 38 basis points of easing this year. FEDWATCH Spot silver XAG= was up 0.1% to $30.05 per ounce, platinum XPT= rose 0.2% to $952.65 and palladium XPD= steadied at $925.00. (Reporting by Anushree Mukherjee in Bengaluru; editing by Shreya Biswas and Jason Neely) (([email protected];))