PRECIOUS-Gold holds steady after Fed rate cut decision; silver hits new high

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FOMC announced 25-basis points rate cut on Wednesday

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November non-farm payrolls due on December 16

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Silver hits record high at $62.98/oz

(Updates for AMERS morning session)

By Sarah Qureshi

Dec 11 (Reuters) - Gold held steady on Thursday, after the U.S. Federal Reserve voted to lower borrowing costs by a quarter-percentage point but signaled a pause in further interest rate cuts, while silver surged to another record high.

Spot gold was up 0.1% at $4,233.39 per ounce, as of 10:05 a.m. ET (1505 GMT) while U.S. gold futures for February delivery gained 0.1% to $4,262.60 per ounce.

Investors are in wait-and-see mode following the Fed's widely anticipated decision to trim interest rates at its Wednesday meeting, said Daniel Pavilonis, senior market strategist at RJO Futures.

Prices are likely to drift higher towards the $4,300/oz mark towards the end of the year, and could trade near $4,500/oz by April next year, Pavilonis added.

The Federal Reserve on Wednesday delivered its third consecutive quarter-point cut, while policymakers also signaled a likely pause in further reductions as they monitor labor market trends and inflation that "remains somewhat elevated."

Lower interest rates tend to be favorable to gold, as it is a non-yielding asset.

U.S. President Donald Trump has advocated for lower interest rates since the start of his second term in January, and his nominee for the next Federal Reserve chair is expected to maintain that stance. White House economic adviser Kevin Hassett is currently viewed as the leading candidate for the position.

Investors now await the monthly U.S. non-farm payrolls report, set to be released on December 16, for fresh cues on the Fed's policy path.

Spot silver hovered near a fresh record-high of $62.98 per ounce, and was last up 1.5% to $62.66.

"We are at the first resistance level at about $63 ... Looking at retracement and then adding that to the upside would equate to just shy of $68 for silver," Pavilonis said. Meanwhile, India's pension regulator on Wednesday permitted investments in gold and silver ETFs for the country's pension funds.

Elsewhere, platinum gained 0.1% to $1,671.56, while palladium fell 0.2% to $1,473.55. (Reporting by Sarah Qureshi in Bengaluru; Editing by Alison Williams)