PRECIOUS-Gold down 1% due to stronger dollar, with Nvidia and US data in focus

* AI chip giant Nvidia reports earnings on Wednesday * Markets also await US PCE data due on Friday * Gold ETFs registered modest net inflows last week (Updates prices as of 1205 GMT) By Polina Devitt LONDON, Aug 28 (Reuters) - Gold prices fell on Wednesday under pressure from a stronger dollar and uncertainty ahead of a key U.S. inflation report that could provide more clarity about the Federal Reserve's September policy meeting. Spot gold XAU= was down 1% at $2,500.03 an ounce by 1205 GMT. Prices on Tuesday rose 0.3% to $2,524.57, a record high for the closing price. The U.S. currency steadied on Wednesday, making dollar-priced commodities less attractive for buyers using other currencies. Recent declines in the dollar had pushed the currency to its weakest in more than a year. The dollar index =USD , which measures performance against a basket of currencies, was last up 0.4%. FRX/ "There are a lot of moving parts today, and items like Nvidia results are hanging over the market for direction clues on (interest) rates," one gold trader said. "The Fed is rightly cautious right now and that's not helping people with direction. Cash is king today." Markets are focused on the looming U.S. personal consumption expenditure (PCE) data, the Fed's preferred measure of inflation, due on Friday. Gold is up 21% so far this year, heading for the biggest annual growth since 2020, with support coming from expectations of U.S. rate cuts, safe-haven demand driven by geopolitical and economic uncertainty as well as robust purchases by central banks. The rally, which started in March and saw spot prices hitting a record high of $2,531.60 on Aug. 20, was initially led by strong demand in China until high prices muted its imports and shifted the focus to Western investor buying. With a rate cut widely expected, physically backed gold exchange-traded funds (ETFs) started purchases again after several years of outflows and are heading for a fourth consecutive month of inflows in August. Gold ETFs saw modest net inflows of 8 metric tons ($403 million) last week, led by North American funds, according to the World Gold Council. Among other precious metals, spot silver XAG= retreated by 2.3% to $29.31 an ounce, platinum XPT= lost 1.8% to $936.55 and palladium XPD= was down 2.4% at $946.75. <^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^ Spot gold price in USD per oz https://reut.rs/3X2j43a ^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^> (Reporting by Polina Devitt in London; Additional reporting by Daksh Grover in Bengaluru; Editing by David Goodman and Mrigank Dhaniwala) (([email protected]; Reuters Messaging: [email protected]))