PRECIOUS-Gold steadies after hitting record high

* Spot gold prices hit record high of $2,631.31 * U.S. PCE inflation data due on Friday * Gold ETFs saw modest net inflows last week - WGC * Palladium demand will fall to a 15-year low in 2025 - Heraeus (Updates graphic and prices as of 1222 GMT) By Polina Devitt LONDON, Sept 23 (Reuters) - Gold steadied on Monday after hitting a record high as strong market sentiment and geopolitical tensions were balanced by a stronger dollar which saw some investors booking profits. Spot gold XAU= was unchanged at $2,620.79 by 1222 GMT, after hitting an all-time high of $2,631.31 earlier in the session. The rally was a continuation of the "fear of missing out" momentum that followed last week's bumper U.S. rate cut by the Federal Reserve, said Ole Hansen, head of commodity strategy at Saxo Bank. Non-yielding gold is up over 27% so far this year, heading for its biggest annual rise in 14 years. "The market looks increasingly in need of consolidation, but at this point, a deep one is needed to rattle hedge funds holding the largest bet on higher prices since 2020," Hansen said. From a technical point of view, gold's Relative Strength Index currently at 71 has been in the "overbought" territory since Friday. "Investors are closely monitoring the potential for future rate cuts. The key factors going forward will be the pace of Fed rate cuts — specifically, whether another 50 basis point cut will occur this year, and the overall trajectory of this easing cycle," said ANZ commodity strategist Soni Kumari. Elsewhere, Israeli Defence Minister Yoav Gallant said the public must be calm after the military launched its most widespread wave of air strikes against Iran-backed Hezbollah, targeting Lebanon's south, eastern Bekaa valley and northern region near Syria. Global physically backed gold exchange traded funds (ETFs) saw modest net inflows of 3 metric tons last week, according to the World Gold Council. Spot silver XAG= fell 1.4% to $30.68 per ounce and platinum XPT= lost 1.8% to $957.19. Palladium XPD= shed 2.6% to $1,040.39. Global demand for palladium will drop by 3% to a 15-year low of 9.1 million ounces in 2025, analysts at Heraeus said in a note. This drop in demand and higher supply from Russia will offset lower output in North America and may cause the volatile palladium price to pull back, they added. <^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^ Spot gold price in USD per oz https://reut.rs/3XzleYk ^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^> (Reporting by Polina Devitt in London; additional reporting by Daksh Grover in Bengaluru; Editing by Varun H K, David Evans and Sharon Singleton) (([email protected]; Reuters Messaging: [email protected]))