PRECIOUS-Gold hovers near record high on rate cut bets, geopolitical tensions

*

Fed's Powell treads tightrope on future rate cuts

*

Trump says Ukraine can recover all lost territory

*

Silver hovers near 14-year highs

(Updates prices for EMEA mid-session trading)

By Ishaan Arora

Sept 24 (Reuters) -

Gold prices steadied on Wednesday, trading near the record high hit the day before, as expectations of further U.S. interest rate cuts and geopolitical uncertainty boosted demand for the safe-haven metal.

Spot gold was steady at $3,762.73 per ounce, as of 1103 GMT, after hitting a record high of $3,790.82 on Tuesday.

U.S. gold futures for December delivery edged down 0.5% to $3,795.80.

The dollar index, which measures the greenback against a basket of major currencies, rose about 0.5%, making dollar-priced bullion more expensive for other currency holders.

"The rally is being fuelled by lower U.S. funding costs alongside a cocktail of investor concerns spanning overvalued equities, Fed independence, and mounting geopolitical risks," said Ole Hansen, head of commodity strategy at Saxo Bank.

Powell said that the Fed would continue to balance concerns over labour market weakness with worries about inflation, while central bank officials took stances on both sides of the monetary policy path divide.

Investors are now looking ahead to the U.S. Personal Consumption Expenditures index, the Fed's preferred inflation gauge, on Friday for further cues on potential rate cuts.

Market participants are pricing in two more 25-basis-point cuts this year, one each in October and December, with 94% and 77% probability, respectively, the CME FedWatch tool shows.

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

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

"With geopolitical turbulence and economic uncertainty driving safe-haven demand, alongside growing expectations of a dovish Fed, gold (should) consolidate above $3,750 in the short term, with the prospect of a new resistance around $3,900," said Ricardo Evangelista, senior analyst at ActivTrades.

Spot silver fell 0.3% to $44.89 per ounce. Platinum fell 0.7% to $1,467.39 and palladium lost 0.1% to $1,218.61. (Reporting by Ishaan Arora in Bengaluru. Editing by Subhranshu Sahu, Mark Potter and Tasim Zahid)