PRECIOUS-Gold hits record high as Fed sticks to three rate cuts in 2024

March 21 (Reuters) - Gold prices surged to a record high on Thursday after the U.S. Federal Reserve left interest rates unchanged in a widely expected move and stayed on track for three rate cuts this year. FUNDAMENTALS * Spot gold XAU= was up 0.5% at $2,196.69 per ounce, as of 0036 GMT, after hitting an all-time high of $2,222.39 earlier in the session. * U.S. gold futures GCcv1 jumped 1.8% to $2,198.90 per ounce. * Fed Chair Jerome Powell said on Wednesday recent high inflation readings had not changed the underlying "story" of slowly easing price pressures in the U.S. * Lower interest rates decrease the opportunity cost of holding non-yielding bullion and weigh on the dollar, making gold cheaper for investors holding other currencies. * The dollar =USD slipped to a one-week low against its rivals, while benchmark U.S. 10-year Treasury yields US10YT=RR also dipped. USD/ US/ * Fed funds futures traders are now pricing in a 75% probability that the Fed will begin cutting rates in June, up from 59% on Tuesday, according to the CME Group's FedWatch Tool. * Focus now shifts to a rate decision from the Bank of England (BoE) later in the day. The central bank is widely expected to keep its bank rate at 5.25%, its highest level since 2008. * SPDR Gold Trust GLD , the world's largest gold-backed exchange-traded fund, said its holdings rose 0.14% to 838.50 tons on Wednesday from 837.35 tons on Tuesday. GOL/ETF * Spot silver XAG= was steady at $25.61 per ounce, platinum XPT= rose 0.5% to $911.95 and palladium XPD= rose 0.4% to $1,025.19. DATA/EVENTS (GMT) 0745 France Business Climate Mfg, Overall March 0815 France HCOB Mfg, Serv, Comp Flash PMIs March 0830 Germany HCOB Mfg, Serv, Comp Flash PMIs March 0900 EU HCOB Mfg, Serv, Comp Flash PMIs March 0930 UK Flash Comp, Mfg, Serv PMIs March 1200 UK BOE Bank Rate March 1230 US Initial Jobless Clm Weekly 1230 US Philly Fed Business Indx March 1345 US S&P Global Mfg, Serv, Comp Flash PMIs March 1400 US Existing Homes Sales Feb (Reporting by Brijesh Patel in Bengaluru; Editing by Sherry Jacob-Phillips) (([email protected]; Within U.S. +1 651 848 5832, Outside U.S. +91 9590227221; Reuters Messaging: [email protected]))