PRECIOUS-Gold hits one-week high on softer dollar; markets await Fed cues

* Market sees 58.9% chance of 25-bp Fed rate cut in December * Silver at 1-week peak; Palladium steady after Monday's rally (Updates prices as of 0724 GMT) By Daksh Grover Nov 19 (Reuters) - Gold climbed to a one-week high on Tuesday, buoyed by a softer dollar, while investors awaited comments from Federal Reserve officials for cues on the U.S. interest rate outlook. Spot gold XAU= was up 0.2% at $2,618.11 per ounce, as of 0514 GMT, after hitting its highest level since Nov. 12 earlier in the session. Prices gained 2% on Monday. U.S. gold futures GCv1 gained 0.3% to $2,622.00. The U.S. dollar paused as profit-booking kicked in after last week's stellar rally. A weaker dollar makes bullion less expensive for buyers holding other currencies. USD/ "Recent market movements are largely technical, influenced by an overbought U.S. dollar," said Kyle Rodda, financial market analyst at Capital.com. The recent strong economic data has raised concerns on whether the Fed will continue to cut rates after 75 basis points of reductions since September. FEDWATCH Several Fed officials are scheduled to speak this week, potentially offering insights into the rate-cut trajectory. Moves in gold prices will be a reflection of any change in expectations about the December meeting, Rodda said, adding that any data or comments from Fed officials pertaining to it would be relevant. Traders currently see a 58.9% chance of a 25-basis-point cut in December versus 41.1% odds of holding the rates steady. FEDWATCH On the geopolitical front, Russia unleashed its largest air strike on Ukraine in almost three months on Sunday, severely damaging the country's power system. Non-yielding assets like bullion thrive in a lower interest rate environment and during times of geopolitical uncertainties. A tight U.S. labour market is still adding to inflationary pressures, although less than it did in 2022 and 2023, according to San Francisco Fed economists. Among other metals, spot silver XAG= was up 0.2% at $31.22 per ounce, after hitting a one-week high earlier in the session. Platinum XPT= was nearly unchanged at $967.70. Palladium XPD= was steady at $1,003.90 after rising more than 5% on Monday. <^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^ Spot gold price in USD per oz https://reut.rs/3ZeqZfW ^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^> (Reporting by Ashitha Shivaprasad and Daksh Grover in Bengaluru; Editing by Subhranshu Sahu and Sumana Nandy) (([email protected]))