* U.S. PCE data due on Friday

* Traders see 70% chance of June rate cut - CME FedWatch Tool

* India's gold imports set to plunge by more than 90% in March

March 27 (Reuters) - Gold prices gained on Wednesday as investors awaited U.S. inflation data that could cast further light on the Federal Reserve's policy path.

Spot gold was up 0.6% at $2,191.88 per ounce as of 09:53 a.m. EDT (1353 GMT). U.S. gold futures rose 0.6% to $2,190.50.

On investors' radar is the U.S. Core Personal Consumption Expenditures Price Index (PCE) data for February, due on Friday. The index rose 0.3% in January.

"We'll have to see whether or not U.S. inflation here domestically is soft enough to provide this clear path to lower rates in the coming months," said Alex Turro, senior market strategist at RJO Futures.

He expects range-bound price action for the session as investors come into the sidelines ahead of the report.

Gold hit a record high last week after the U.S. central bank's policymakers indicated they still expect to reduce interest rates by three-quarters of a percentage point by end-2024, despite recent high inflation readings.

Traders now see a 70% chance of a June rate cut by the Fed .

Lower interest rates reduce the opportunity cost of holding bullion.

"Central banks continue to report ongoing gold purchases, driven by their desire to diversify their currency reserves. This is offsetting the weakness from investment demand, which focuses more on U.S. rate-cut expectations," said UBS analyst Giovanni Staunovo.

Meanwhile, India's gold imports are set to plunge by more than 90% in March from the previous month as banks cut imports after record-high prices hit demand.

Spot silver was up 0.6% at $24.58 per ounce, platinum lost 0.6% to $897.30 and palladium fell 1.9% to $974.31. (Reporting by Anjana Anil, Kavya Balaraman, and Sherin Elizabeth Varghese in Bengaluru; Editing by Pooja Desai)