PRECIOUS-Gold hovers near two-week peak as focus shifts to US inflation data

Dec 10 (Reuters) - Gold prices remained mostly unchanged on Tuesday, staying near a two-week high hit in the previous session, as investors awaited key U.S. inflation data, due later this week, for further insights into the Federal Reserve's interest rate outlook. FUNDAMENTALS * Spot gold XAU= held its ground at $2,660.82 per ounce, as of 0042 GMT. U.S. gold futures GCv1 were steady at $2,683.60. * Gold hit a two-week high on Monday, supported by renewed buying of the metal by China's central bank following a six-month hiatus. * Traders are now focused on the November U.S. consumer price index, due on Wednesday, following last week's stronger-than-expected payrolls report. Markets now price in an 85.8% chance of a quarter-point rate reduction at the Fed's Dec. 17-18 meeting, up from 68% before the jobs data. * Last month, U.S. consumers were bracing for higher levels of inflation in coming years even as they marked up expectations that their personal financial situations would improve markedly, the New York Federal Reserve reported on Monday. * Also on investors' radar is the European Central Bank policy meeting on Thursday, where a quarter-point rate cut is expected. * Gold, which pays no interest, tends to benefit when interest rates fall as this reduces the opportunity cost of holding bullion. * SPDR Gold Trust GLD , the world's largest gold-backed exchange-traded fund, said its holdings fell 0.13% to 870.79 tons on Monday from 871.94 tons on Friday. GOL/ETF * Meanwhile, the United States and Britain on Monday announced a new wave of sanctions targeting what it said was the illicit gold trade, which the United Kingdom said was financing Russian President Vladimir Putin's war efforts in Ukraine and fuelling corruption. * Spot silver XAG= gained 0.3% to $31.90 per ounce, platinum XPT= added 0.3% to $941.90 and palladium XPD= rose 0.3% to $976.29. DATA/EVENTS (GMT) 0700 Germany HICP Final YY Nov China Exports YY Nov China Imports YY Nov China Trade Balance USD Nov (Reporting by Rahul Paswan and Brijesh Patel in Bengaluru; Editing by Sherry Jacob-Phillips) (([email protected] ; If within U.S. +1 646 223 8780;;))