PRECIOUS-Gold slips on firmer dollar, US inflation data in focus

* Markets await US PCE data due on Friday * China's July net gold imports via Hong Kong up 17% * US consumer confidence at six-month high (Adds comment, updates prices and graphics) By Daksh Grover Aug 28 (Reuters) - Gold prices slipped on Wednesday as the dollar ticked up, while investors awaited a key U.S. inflation report due this week for more clarity on the size of a likely September rate cut. Spot gold XAU= fell 0.6% to $2,509.75 per ounce by 0749 GMT. Bullion hit a record high of $2,531.60 on Aug. 20. U.S. gold futures GCcv1 were down 0.4% to $2,543.20. The dollar index .DXY was up 0.2%, diminishing gold's attractiveness for foreign currency holders. USD/ "Gold is still overall bullish, and that's a story linked to the fact that next month we are expecting the start of the Fed rate cut cycle," said Ilya Spivak, head of global macro, Tastylive. Markets are pricing in about a 66% chance of a 25 basis points U.S. rate cut in September and a 34% chance of a 50 bps cut, according to the CME FedWatch tool. Non-yielding bullion tends to thrive in a low-interest-rate environment. Last week, Federal Reserve Chair Jerome Powell last week endorsed an imminent start to rate cuts and expressed confidence that inflation is within reach of the U.S. central bank's 2% target. "The market seems to be waiting for a catalyst to ignite the potential bullish breakthrough above that $2,532 level," said Kelvin Wong, OANDA's senior market analyst for Asia Pacific. Market participants are now focused on the U.S. personal consumption expenditure (PCE) data, the Fed's preferred measure of inflation, due on Friday. A report on Tuesday showed that U.S. consumer confidence rose to a six-month high in August but Americans are becoming more anxious about the labour market. China's net gold imports via Hong Kong in July rose by about 17% from the previous month, the first gain since March, data showed on Tuesday. Among other metals, spot silver XAG= slipped 1.7% to $29.48 per ounce, platinum XPT= was down 1% at $943.70 and palladium XPD= fell nearly 1% to $960.25. <^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^ Spot gold price in USD per oz https://reut.rs/3yUgkNo ^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^> (Reporting by Daksh Grover in Bengaluru; Editing by Subhranshu Sahu and Mrigank Dhaniwala) (([email protected];))