PRECIOUS-Gold firms on US tariff concerns ahead of key US data

* Bullion hit a record high of $2,942.70/oz on Tuesday * Trump says he will sign reciprocal tariffs order soon * US Jan CPI increased at fastest pace in nearly 1-1/2 years * US PPI data due at 1330 GMT (Adds comment, updates with mid-session trading) By Anushree Mukherjee Feb 13 (Reuters) - Gold gained on Thursday as markets tracked U.S. President Donald Trump's tariff plans, which could further escalate a global trade war, ahead of another set of inflation reading from the U.S. after its consumer prices jumped in January. Spot gold XAU= added 0.5% to $2,918.00 per ounce as of 0750 GMT, moving back towards its record peak of $2,942.70 hit on Tuesday. U.S. gold futures GCcv1 firmed 0.6% to $2,945.40. The U.S. Producer Price Index (PPI) data is due at 1330 GMT. Trump said that he would soon impose reciprocal tariffs on every country that charges duties on U.S. imports, in a move that ratchets up fears of a widening global trade war and threatens to accelerate U.S. inflation. "Gold continues to serve as a key diversifier amid trade uncertainties, as market participants seek to mitigate portfolio volatility," IG market strategist Yeap Jun Rong said. Gold prices shed more than 1% on Wednesday after data showed U.S. consumer price index increased by the most in nearly 1-1/2 years in January, reinforcing the Federal Reserve's message that it was in no rush to resume interest rate cuts. But prices rebounded as trade war uncertainties continued to bolster the safe-haven metal. "Markets (are) largely shrugging off the hotter-than-expected CPI print. The upcoming PPI data may have a more muted impact on sentiment, given that rate expectations have already adjusted to a prolonged high-for-longer rate environment," Yeap said. Fed Chair Jerome Powell said the central bank's battle with rising prices wasn't over and that any further rate cuts would have to wait until it is clear that inflation will return to its 2% target. High interest rates tarnish the non-yielding bullion's allure. "Strong investment inflows, resilient physical demand and elevated central bank purchases will keep gold on a strong footing," ANZ said, adding that bullion will continue to benefit as investors hedge portfolios against a volatile macro backdrop. Spot silver XAG= rose 0.5% to $32.37 per ounce, platinum XPT= gained 0.7% to $999.85 and palladium XPD= firmed 1.2% to $984.86. <^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^ Spot gold price in USD per oz https://reut.rs/40WFmFt ^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^> (Reporting by Anushree Mukherjee in Bengaluru; additional reporting by Swati Verma; Editing by Alan Barona, Sherry Jacob-Phillips and Sumana Nandy) ((anushree.ashishMukherjee@thomsonreuters.com))