PRECIOUS-Gold heads for weekly fall as June US rate cut hopes fade

* Gold set for first weekly drop since mid-Feb * Traders price in about 59% chance of June rate cut * Commerzbank raises year-end silver forecast to $29 (Updates prices and graphic as of 1206 GMT) By Sherin Elizabeth Varghese March 15 (Reuters) - Gold prices firmed on Friday, but were on track for their first weekly drop in four over concerns that the Federal Reserve might defer interest rate cuts beyond June after data showed a higher-than-expected rise in inflation. Spot gold XAU= rose 0.1% to $2,162.10 per ounce, as of 1206 GMT. U.S. gold futures GCcv1 remained unchanged at $2,167.50. Bullion was on track for a weekly drop of about 0.5%, its first since mid-February, and retreating from its last week's record high of $2,194.99 after data indicated that U.S. consumer prices increased above expectations in February. U.S. producer prices also showed some stickiness in inflation. Higher-than-expected inflation puts the Fed under more pressure to maintain interest rates higher for longer, weighing on non-yielding assets such as gold. "There will be a positive undertone in 2024 for gold with strong investment demand and safe-haven demand," Jigar Trivedi, a senior analyst at Reliance Securities, said. After last week's strong rally, some sort of consolidation or profit booking is expected, and the dollar index rebounding after very strong U.S. economic data has led to the weekly dip in gold, Trivedi added. The U.S. dollar index .DXY headed for its largest weekly gain since mid-January. A firmer dollar makes gold more expensive for holders of other currencies. Traders continue to bet on interest rate cuts in June, pricing in about 59% chance compared with 72% before the CPI data, according to the CME Group's FedWatch Tool. For 2024, market sees about three rate cuts, down from between three to four last Friday. Spot platinum XPT= rose 1.4% to $940.50 per ounce, palladium XPD= gained 2.3% to $1,094.25, while silver XAG= was up 1.3% at $25.15. All the three metals were poised to post a weekly gain. Commerzbank raised its year-end forecast for silver to $29, but noted that it is unlikely to hit record high in the foreseeable future. <^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^ Spot gold price in USD per oz https://reut.rs/48PZkUk ^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^> (Reporting by Sherin Elizabeth Varghese in Bengaluru, Editing by Jane Merriman and Shailesh Kuber) (([email protected];))