(Updates prices, adds details)
* Gold might bounce into $1,992-$2,003 range - technicals
* Biden, McCarthy push forward towards U.S. debt-ceiling deal
* Gold reached nearly four week low earlier in session
* Silver, palladium down 1%
May 18 (Reuters) - The price of gold slipped on Thursday as signs that a deal to raise the U.S. debt ceiling could be reached in Washington reduced its safe haven appeal. Fading expectations for early U.S. rate cuts also took the shine off non-yielding bullion.
Spot gold fell 0.3% to $1,976.09 per ounce by 1106 GMT, earlier going as low as $1,971.99, its lowest since April 21.
U.S. gold futures were 0.3% lower at $1,979.50.
The Federal Reserve's hawkish comments as it tries to rein in inflation has weighed on gold with the U.S. dollar index strengthening, said Ross Norman, an independent analyst.
"Gold's failure to hold technical support at the 50-day moving average will likely encourage further tests of the downside," Norman added. Traders have scaled back expectations of interest rate cuts this year and expect a 27.3% chance of the Fed raising rates in the June meeting, compared to next to zero last week, according to the CME FedWatch tool.
Non-interest-bearing bullion becomes less attractive in a high-interest-rate environment.
The U.S. dollar index held near a seven-week peak, making gold more expensive for those holding other currencies. Gold's appeal was further dented after U.S. President Joe Biden and congressional Republican Kevin McCarthy on Wednesday underscored their determination to reach a deal to raise the federal government's $31.4 trillion debt ceiling.
The cautious optimism that Washington might be close to a deal to raise the debt ceiling and avert a first-ever default sent Asian shares higher. Gold might bounce into a range of $1,992-$2,003 per ounce as it has found support at $1,975, according to Reuters technical analyst Wang Tao.
Later in the day, speeches are expected from Fed governor Philip Jefferson and Fed vice chair for supervision Michael Barr, along with initial jobless claims for the week of May 12.
Silver dipped 1% to $23.48 per ounce, platinum was up 0.3% to $1,071.46 while palladium was also down 1% to $1,472.34.
(Reporting by Kavya Guduru in Bengaluru; Editing by Simon Cameron-Moore)
