Gold subdued as dollar holds firm on fading rate cut hopes

Feb 6 (Reuters) - Gold prices languished near their lowest level in nearly two weeks on Tuesday, weighed down by a firm dollar and elevated Treasury yields, as traders tempered expectations that the U.S. Federal Reserve would aggressively cut interest rates this year.

FUNDAMENTALS

* Spot gold was flat at $2,025.24 per ounce, as of 0216 GMT, after hitting its lowest since Jan. 25 in the previous session.

* U.S. gold futures edged 0.1% lower to $2,041.30 per ounce.

* Data released on Monday showed that the U.S. services sector growth picked up in January as new orders increased and employment rebounded, but suppliers appeared to fall behind, resulting in a measure of input prices rising to an 11-month high.

* Two Fed officials said that the U.S. central bank did not need to be overly concerned by recent higher-than-expected economic growth and employment figures and could take time before deciding to reduce interest rates, echoing Powell's prudence in determining when to cut rates.

* The dollar index hovered near a three-month high, making bullion more expensive for other currency holders, while yields on benchmark 10-year Treasury held above 4%.

* Asian shares edged up thanks to a bounce in battered Chinese markets, although investors were cautious after a slide on Wall Street amid diminishing expectations of a near-term Fed rate cut, which in turn underpinned the dollar.

* Friday's blowout U.S. jobs report dashed prospects of early Fed rate cuts. Traders have repriced their bets to four quarter-point cuts for 2024, down from six last Monday, according to LSEG's interest rate probability app IRPR.

* Investors are awaiting remarks from a host of Fed speakers on Tuesday and the rest of this week for further clues on the timing of rate cuts.

* Spot silver fell 0.1% to $22.33 per ounce, while palladium rose 0.4% to $952.44 and platinum edged 0.2% higher to $898.53.

DATA/EVENTS (GMT) 0330 Australia RBA monetary policy statement -- 0700 Germany Industrial Orders Dec 0830 Euro Zone HCOB Construction PMI Jan 0930 UK S&P Global PMI Jan 1000 Euro Zone Retail Sales Dec 1700 US Fed's Mester speaks -- 1800 US Fed's Kashkari speaks -- 1900 US Fed's Collins speaks -- (Reporting by Harshit Verma in Bengaluru; Editing by Subhranshu Sahu)