PRECIOUS-Gold eases as Russia-Ukraine ceasefire optimism curb safe-haven demand

May 20 (Reuters) - Gold prices eased on Tuesday, as a firmer dollar and optimism over a potential ceasefire between Russia and Ukraine dampened investor demand for safe-haven assets.

FUNDAMENTALS

Spot gold XAU= was down 0.4% at $3,217.50 an ounce, as of 0024 GMT. U.S. gold futures GCcv1 also slipped 0.4% to $3,219.90.

The dollar .DXY inched higher after touching a more than one-week low in the prior session, making greenback-priced gold less appealing to holders of other currencies. USD/

U.S. President Donald Trump spoke with President Vladimir Putin on Monday and said Russia and Ukraine will immediately start negotiations toward a ceasefire, but the Kremlin said reaching an agreement would take time and Trump indicated he was not ready to join Europe with fresh sanctions to pressure Moscow.

Gold, which is considered a safe asset amid geopolitical and economic uncertainties, has hit multiple record highs this year and is up about 23% so far this year.

U.S. Federal Reserve officials on Monday took on cautiously the ramifications of the latest downgrade of the U.S. government's credit rating and unsettled market conditions as they continued to navigate a very uncertain economic environment.

Moody's cut the United States' rating to "Aa1" from "Aaa" on Friday, citing rising debt and interest "that are significantly higher than similarly rated sovereigns".

Several Fed officials are scheduled to speak later in the day, potentially providing further insights into the economy and the central bank's policy path.

Markets are now pricing in at least 53 basis points of rate cuts this year, with the first reduction expected to begin in October. USDIRPR

Spot silver XAG= edged 0.1% lower to $32.32 an ounce, platinum XPT= rose 0.3% to $1,000.40 and palladium XPD= lost 0.2% to $972.57.

DATA/EVENTS (GMT)