Gold prices traded in a tight range on Tuesday, as investors cautiously awaited the monthly U.S. jobs data and Federal Reserve Chair Jerome Powell's Congressional testimony, both of which could influence interest rate policy.

 

FUNDAMENTALS

* Spot gold was down 0.1% at $1,845.45 per ounce, as of 0109 GMT. U.S. gold futures fell 0.2% to $1,851.00.

* The dollar index edged up 0.1%, making bullion less affordable for buyers holding other currencies.

* Data on Monday showed new orders for U.S.-manufactured goods fell in January, pulled down by a plunge in civilian aircraft bookings, but increases in machinery and a range of other products suggested that manufacturing could be regaining its footing.

* Global supply chains have "returned to normal", the Federal Reserve Bank of New York said on Monday, with pressures dropping to the lowest since before the COVID-19 pandemic, which could also point to softening inflation.

* Fed's Powell is due to deliver his semi-annual testimony before Congress on Tuesday and Wednesday, which will be closely watched for any hints on the U.S. central bank's tightening path.

* The U.S. jobs report for February is due on Friday.

* Although gold is considered a hedge against inflation, rising interest rates tend to decrease the appetite for zero-yield bullion.

* Market participants expect the Fed to raise rates by 25 basis points at its March 21-22 meeting, with a peak seen at 5.488% in September.

* Spot silver was unchanged at $21.03 per ounce, platinum fell 0.3% to $972.71 and palladium slipped 0.7% to $1,430.79.

 (Reporting by Kavya Guduru in Bengaluru; Editing by Sherry Jacob-Phillips)