PRECIOUS-Gold faces first weekly loss in four as rate cut bets dwindle

* Gold down 0.8% for the week * Traders price in about 59% chance of June rate cut * Silver, platinum, palladium up weekly at 4%, 3%, 6% respectively (Updates as of 1842 GMT) By Anjana Anil March 15 (Reuters) - Gold prices held steady on Friday as they looked set to log their first weekly drop in four as investors lowered expectations of a U.S. interest rate cut after data over the week showed bubbling price pressures. Spot gold XAU= was little changed at $2,159.99 per ounce, as of 2:42 p.m. EDT (1842 GMT). Bullion lost 0.8% for the week, in its first weekly decline since mid-February after hitting a record high of $2,194.99 last week. U.S. gold futures GCcv1 settled 0.3% lower at $2,161.5. Data this week showed U.S. consumer prices increased above expectations in February and producer prices also showed some stickiness in inflation. "Gold has already priced in whatever positive boost it would get from expectations that interest rates are going down... if inflation starts to kick higher again, it means that policymakers are going to have to keep monetary policy more restrictive for longer," said Everett Millman, chief market analyst at Gainesville Coins. "Although gold does not particularly like a high interest rate environment, if the reasons for interest rates to stay that high is because inflation is running hot... that naturally means people will again turn to gold," Millman added. Higher-than-expected inflation maintains pressure on the Fed to keep interest rates elevated, weighing on gold. The non-yield-bearing precious metal is also used as a hedge against inflation. Traders continue to bet on interest rate cuts in June, although the chances of rates easing in June are seen at 59%, compared with 72% before the CPI data, the CME FedWatch Tool showed. The U.S. dollar index .DXY headed for its largest weekly gain since mid-January, making gold more expensive for overseas buyers. "We increase our average gold price forecast for 2024 from $2,090/toz to $2,180/toz, targeting a move to $2,300/toz by year-end," Goldman Sachs wrote in a note. Spot platinum XPT= rose 1.5% to $940.95 per ounce, palladium XPD= gained 1.2% to $1,082.61, while silver XAG= was up 1.7% at $25.25. <^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^ Spot gold price in USD per oz https://reut.rs/43iezUM ^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^> (Reporting by Anjana Anil in Bengaluru; Editing by Nick Macfie, Shailesh Kuber and Barbara Lewis) (([email protected];))