PRECIOUS-Gold set for first weekly dip in four amid US inflation heat

* Gold set for first weekly drop since mid-Feb * Hotter-than-expected U.S. inflation pressures Fed rate-cut hopes * Traders reduce bets for June rate cut, number of cuts for 2024 (Adds paragraph on technicals, updates prices and adds graphic) By Harshit Verma March 15 (Reuters) - Gold eked out gains on Friday but was set for its first weekly drop in four weeks, as surprisingly hot U.S. inflation readings prompted traders to re-think on how swiftly and deeply the Federal Reserve could cut interest rates. Spot gold XAU= rose 0.3% at $2,167.72 per ounce, as of 0657 GMT, but was on track for a weekly drop of about 0.5%, its first since mid-February. U.S. gold futures GCcv1 edged 0.2% up at $2,172.10. "It's hard to ignore the upside surprise from inflation now ... I don't see any fresh catalysts to propel gold above a major resistance of $2,200 in the short term," InProved precious metals trader Hugo Pascal said. U.S. producer prices increased more than expected in February. Consumer inflation also showed some stickiness in inflation. Higher inflation adds pressure on the Fed to keep interest rates elevated, weighing on non-yielding assets such as gold, and increasing appeal for bonds and lifting the dollar. Ten-year Treasury yields US10YT=RR rose nearly 20 basis points to 4.2786% this week, and the dollar index .DXY gained about 0.7%, set for its largest weekly gain since mid-January. A firmer U.S. dollar makes gold more expensive for other currency holders. Traders have tempered the chances of a rate cut at the Fed's June meeting to 61%, from about 75% last Friday, according to LSEG's rate probability app. For 2024, market sees about three rate cuts, down from between three to four last Friday. Spot gold XAU= is biased to bounce into a range of $2,169-$2,175 per ounce, as it stabilised again around support at $2,152, according to Reuters market analyst Wang Tao. TECH/C. TECH/C Spot platinum XPT= rose 0.4% to $930.90 per ounce, palladium XPD= dropped 1% to $1,080.19, while silver XAG= was up 1.1% at $25.09. All three metals were poised to post a weekly gain. <^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^ Spot gold price in USD per oz https://reut.rs/3wXeEkT ^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^> (Reporting by Harshit Verma in Bengaluru; Editing by Sherry Jacob-Phillips and Rashmi Aich) (([email protected];))