PRECIOUS-Gold inches up on trade war fears, inflation data on tap

Feb 13 (Reuters) - Gold prices edged up on Thursday, as markets tracked developments in U.S. President Donald Trump's tariff plans, which could ignite a global trade war, while investors awaited U.S. inflation data due later in the day.

FUNDAMENTALS

Spot gold XAU= rose 0.1% to $2,905.12 per ounce as of 0024 GMT, after prices dropped more than 1% following the release of the U.S. consumer price index in the previous session. Bullion hit a record peak of $2,942.70 on Tuesday.

U.S. gold futures GCcv1 were steady at $2,929.60.

The U.S. consumer price index increased more than expected in January, reinforcing the Federal Reserve's message that it was in no rush to resume cutting interest rates amid growing uncertainty over the economy.

Chair Jerome Powell told the House Financial Services Committee that the data was further evidence that the Fed's battle with rising prices wasn't finished, and meant any further rate cuts would have to wait until it is clear inflation will return to the Fed's 2% target.

Bullion is considered a hedge against inflation, but higher interest rates dampen the non-yielding asset's appeal.

Trump on Wednesday said he would impose reciprocal tariffs as soon as Wednesday evening 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.

Investors are closely watching for the Producer Price Index (PPI) data due later in the day for further insights on monetary policy.

Spot silver XAG= rose 0.1% to $32.26 per ounce, platinum XPT= was steady at $992.32 and palladium XPD= firmed 0.2% to $975.48.

DATA/EVENTS (GMT)

0700 Germany HICP Final YY Jan

0700 UK GDP Est 3M/3M, GDP Estimate MM, GDP Estimate YY Dec

0700 UK Services MM, Services YY Dec

0700 UK Manufacturing Output MM Dec

0700 UK GDP Prelim QQ, GDP Prelim YY Q4

1330 US Initial Jobless Clm 8 Feb, w/e

1330 US PPI Machine Manuf'ing Jan