PRECIOUS-Gold hovers near record high as rate cut hopes, geopolitical risks bolster demand

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Fed's Powell strikes middle path on inflation, jobs

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Trump says Ukraine can retake all its land from Russia

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US Personal Consumption Expenditures index data due on Friday

(Adds latest comment and updates prices)

By Anmol Choubey

Sept 24 (Reuters) - Gold prices rose on Wednesday, hovering near record highs, as expectations of further rate cuts persisted despite U.S. Federal Reserve Chair Jerome Powell's cautious remarks, while geopolitical uncertainty continued to underpin demand for the metal.

Spot gold rose 0.3% to $3,776.29 per ounce as of 0609 GMT on Wednesday.

Prices were recovering from an earlier low of $3,750.49 hit during the session, amid profit-taking following its record high of $3,790.82 on Tuesday.

U.S. gold futures for December delivery edged down 0.2% to $3,808.

"Gold is currently driven largely by monetary policy expectations in the United States, with some influence from political risk," said Capital.com analyst Kyle Rodda.

"Hawkish rhetoric from U.S. President Donald Trump regarding NATO defense may be slightly raising geopolitical stakes, and these factors are supporting the market."

NATO warned Russia on Tuesday that it would use "all necessary military and non-military tools" to defend itself, as Trump shifted rhetoric by asserting Ukraine could recover all territory occupied by Russia.

Powell said on Tuesday the central bank needed to continue balancing the competing risks of high inflation and a weakening job market in coming rate decisions, even as his colleagues staked out arguments on both sides of the policy divide.

The U.S. weekly initial jobless claims report is due on Thursday, followed by the Personal Consumption Expenditures index, the Fed's preferred inflation gauge, on Friday.

"If Friday's data indicates inflation is rising more than policymakers might prefer, possibly due to tariffs, it could exert downward pressure on gold," said Rodda.

Goldman Sachs said in a note dated Tuesday it expects 25 basis point of cuts in October and December, with a 50 basis point reduction possible if the labour market deteriorates more than anticipated, followed by two cuts in 2026 to a range of 3%-3.25%.

Gold, considered a safe-haven asset during broader uncertainty, tends to perform well in low-interest rate environment.

Spot silver edged up 0.3% at $44.16 per ounce, platinum rose 0.3% to $1,482.78 and palladium gained 1.3% at $1,235.34. (Reporting by Anmol Choubey in Bengaluru; Editing by Subhranshu Sahu, Rashmi Aich and Ronojoy Mazumdar)