June 27 (Reuters) - Gold prices rose 1% on Thursday from an over two-week low hit in the previous session as the dollar softened, with the market spotlight on key U.S. inflation data for more cues on the Federal Reserve's interest rate path.
Spot gold was up 1.3% at $2,327.11 per ounce, as of 1412 GMT, after falling on Wednesday to its lowest level since June 10.
U.S. gold futures were 1.1% higher at $2,337.90.
"Some of the data that came out was supportive to the gold market. It was essentially the wholesale inventories that came in lower than expected. The final GDP figure is significantly lower. So gold futures are getting a boost on dollar index coming off," said Phillip Streible, chief market strategist at Blue Line Futures.
Ebbing economic momentum was underscored by data showing business spending on equipment declined in May, while a slump in exports pushed up the goods trade deficit. In its third estimate of Gross domestic product (GDP) for the January-March quarter, the government confirmed that economic growth moderated sharply in the first quarter.
Making gold more attractive for other currency holders, the dollar weakened 0.3% against a basket of currencies, while benchmark 10-year yields fell to 4.2845%.
Investors have largely stuck to their view of around two interest rate cuts this year, as per LSEG's FedWatch data, even though the U.S. central bank has projected only one.
Lower interest rates reduce the opportunity cost of holding non-yielding bullion.
A key inflation report, also the Fed's preferred inflation gauge, the personal consumption expenditures (PCE) data is due on Friday.
Markets were also on alert for signs of Japanese authorities intervening in the yen as it languished near a 38-year low. Economic uncertainty tends to boost bullion's appeal.
Spot platinum was down 1.2% at $999.05, while palladium rose 0.7% to $935.00, and silver gained 1.2% to $29.11.
Reporting by Harshit Verma and Daksh Grover in Bengaluru; Editing by Vijay Kishore
