Gold prices inched up on Wednesday, as market participants assessed the timing and number of U.S. interest rate cuts and awaited U.S. economic data for further clarity on monetary policy.

Spot gold was up 0.2% at $2,413.63 per ounce, as of 1013 GMT. U.S. gold futures gained 0.3% to $2,414.40.

"The medium to long-term view for gold still remains supportive because we are instilling two rate cuts this year starting from September... and in the background, geopolitical tension will continue to support gold as a safe haven investment," said ANZ commodity strategist Soni Kumari.

The Fed will cut rates just twice this year, in September and December, as resilient U.S. consumer demand warrants a cautious approach despite easing inflation, according to a Reuters poll.

The U.S. GDP data on Thursday and personal consumption expenditure (PCE) price index data on Friday could help investors calibrate their expectations of when rate cuts might begin.

Lower interest rates reduce the opportunity cost of holding non-yielding gold.

Investors are also closely watching developments in the U.S. election campaign, as Vice President Kamala Harris is expected to be the Democratic Party's candidate to face Republican Donald Trump.

"Many see Donald Trump as the favourite to win, meaning a more protectionist administration in Washington," Ricardo Evangelista, senior analyst at ActivTrades said in a note.

"This scenario entails a stronger dollar, as more expensive imports could increase inflation and drive higher interest rates, creating headwinds for the precious metal's price."

Meanwhile, India slashed import duties on gold and silver to 6% from 15%.

"In the second half of 2024, we are going to see strong physical demand coming from the favorable cut in import duty," Kumari said.

In addition, the monsoon is going to be above average and that will support rural income, giving them surplus money to buy gold, she added.

Spot silver inched up 0.2% to $29.27 per ounce, platinum firmed 1.5% to $957.82 and palladium added 1.6% to $940.88.

(Reporting by Sherin Elizabeth Varghese in Bengaluru; Editing by Varun H K)