Gold prices held above the key $1,900 per ounce level on Tuesday as expectations of less-aggressive Federal Reserve rate hikes after the collapse of two big U.S. regional banks lifted non-yielding bullion's appeal.

 

FUNDAMENTALS

* Spot gold was flat at $1,913.54 per ounce, as of 0053 GMT. U.S. gold futures were also listless at $1,916.20.

* Gold prices jumped more than 2% on Monday to hit their highest since Feb. 3 at $1,914.58 despite efforts by U.S. officials to limit the fallout from the now-shuttered Silicon Valley Bank and restore investor confidence in the banking system. Regulators had shuttered New York-based Signature Bank on Sunday.

* HSBC bought the UK arm of Silicon Valley Bank for a symbolic one pound on Monday, rescuing a key lender for technology start-ups in Britain.

* Markets are now largely pricing in a 25-basis-point rate hike at next week's Fed policy meeting, with a 31.4% chance of a pause in hikes.

* Gold is considered a hedge against economic uncertainties, and tends to gain on expectations of lower interest rates, which reduce the opportunity cost of holding non-yielding bullion.

* The U.S. consumer price index (CPI) report for February due at 1230 GMT will be closely watched for cues on the Fed's rate-hike plan.

* The dollar index was up 0.2%, making bullion more expensive for buyers holding other currencies.

* SPDR Gold Trust, the world's largest gold-backed exchange-traded fund, said its holdings rose 1.31% to 913.27 tonnes on Monday from 901.42 tonnes on Friday.

* Spot silver edged up 0.1% to $21.83 per ounce, platinum eased 0.1% to $995.21 and palladium was unchanged at $1,473.33.

(Reporting by Kavya Guduru in Bengaluru; Editing by Sherry Jacob-Phillips)