PRECIOUS-Gold extends decline as investors await US data, Fed comments

* Fed to be more cautious in easing process ahead, says analyst * US CPI, PPI data due later this week * China consumer prices rise at slowest pace in 4 months (Updates prices) By Rahul Paswan Nov 11 (Reuters) - Gold prices fell on Monday for a second consecutive session as investors awaited U.S. economic data and comments from Federal Reserve officials this week for more clarity on the future direction of U.S. interest rates. Spot gold XAU= dropped 0.5% to $2,670.37 per ounce, as of 0736 GMT. U.S. gold futures GCv1 fell 0.7% to $2,677. "Gold prices were previously seen as a hedge against U.S. political risks, and a quicker-than-expected conclusion in the elections may be a trigger for some near-term unwinding along with the firmer U.S. dollar," said IG market strategist Yeap Jun Rong. The dollar index =USD was a fraction firmer, after gaining 0.6% last week mainly against the euro. A stronger dollar makes gold less appealing for other currency holders. Gold prices registered their worst week in more than five months on Friday as Donald Trump's victory in the U.S. presidential election has raised the prospect of higher tariffs, which could keep interest rates elevated. "We may expect the Fed to be more cautious in its easing process ahead, which could cap gold prices," Yeap said. Bullion is considered a hedge against inflation, but higher interest rates raise the opportunity cost of holding it. Several Fed officials, including Chair Jerome Powell, are scheduled to speak this week. Also, U.S. consumer and producer price index data, weekly jobless claims and retail sales figures are due this week. Traders see a 65% chance of another 25-basis-point Fed rate cut in December and a 35% chance of no change, according to the CME Fedwatch tool. Elsewhere, consumer prices in top consumer China rose at the slowest pace in four months in October while producer price deflation deepened, even as Beijing doubled down on stimulus to support the sputtering economy. Spot silver XAG= fell 0.3% to $31.21 per ounce, platinum XPT= rose 1.1% to $979.44, and palladium XPD= climbed 0.5% to $994.32. <^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^ Spot gold price in USD per oz https://reut.rs/4fjidTO ^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^> (Reporting by Rahul Paswan in Bengaluru; Editing by Mrigank Dhaniwala and Subhranshu Sahu) (([email protected] ; If within U.S. +1 646 223 8780;;))