Gold prices rose on Thursday as investors held on to hopes that the Federal Reserve would cut interest rates by a significant amount this year, even after the U.S. central bank pushed back against the idea of a cut in March.

FUNDAMENTALS

* Spot gold rose 0.4% to $2,045.65 per ounce by 0213 GMT. On Wednesday, bullion touched a more than two-week high of $2,055.89 before paring gains to end the session 0.1% higher.

* U.S. gold futures fell 0.2% to $2,063.20.

* The Fed left interest rates unchanged and knocked down the idea that the U.S. central bank could cut rates in the spring.

* The Fed dropped a longstanding reference to possible further hikes in borrowing costs.

* Futures pared bets for a rate cut in March to 35.5% from 90% at 2023-end, but increased chances of a reduction in May to 96%, according to LSEG's interest rate probability app IRPR.

* Traders are pricing in about 142 basis points (bps) of Fed rate cuts for this year, up from bets of about 130 bps of reductions on Wednesday morning.

* China's factory activity expanded in January, helping lift business confidence to a nine-month high, a private-sector survey showed.

* Data showed U.S. private payrolls rose far less than expected in January. Investors are now awaiting Friday's jobs report for January, which is expected to show that employers added 180,000 jobs last month.

* Investors also took stock of troubles at regional U.S. lender New York Community Bancorp after it cut its dividend and posted a surprise loss, renewing fears over the health of similar lenders.

* The dollar index rose 0.2%, while yields on benchmark U.S. Treasury notes languished near their lowest in more than two weeks at 3.9426%.

* Spot silver rose 0.3% to $22.97 per ounce, platinum gained 0.2% to $919.95, and palladium climbed 0.4% to $980.34.

DATA/EVENTS (GMT) 0500 India HSBC Mfg PMI Jan 0500 India Fy 24/25 Budget -- 0830 Hong Kong Retail Sales Vol Dec 0850 France HCOB Mfg PMI Jan 0855 Germany HCOB Mfg PMI Jan 0900 Euro Zone HCOB Mfg PMI Jan 0930 UK S&P Global Mfg PMI Jan 1000 Euro Zone Unemployment rate Dec 1200 UK BOE Bank Rate Jan 1330 US Initial Jobless Clm w/e Jan. 27 1430 Canada S&P Global Mfg PMI Jan 1445 US S&P Global Mfg PMI Jan 1500 US ISM Mfg PMI Jan

(Reporting by Harshit Verma in Bengaluru; Editing by Subhranshu Sahu)