PRECIOUS-Gold slips 1% as investors focus on US-Russia talks on Ukraine

By Brijesh Patel

Aug 11 (Reuters) - Gold prices slipped 1% on Monday as market participants focussed on the upcoming U.S.-Russia talks over the war in Ukraine, and July inflation data that could offer more insight into the U.S. Federal Reserve's interest rate outlook.

Spot gold XAU= was at $3,363.31 per ounce, as of 0703 GMT, after it hit its highest since July 23 on Friday.

U.S. gold futures GCcv1 for December delivery dropped 2% to $3,423.10.

"Cooling geopolitical tensions surrounding the war in Ukraine saw gold fall further, following Friday's announcement that U.S. President Donald Trump will meet with (Russia President) Vladimir Putin on U.S. soil," City Index senior analyst, Matt Simpson, said.

Trump said on Friday he will meet Putin on August 15 in Alaska to negotiate an end to the war.

Meanwhile, U.S. consumer price data is due on Tuesday, with analysts expecting the recently-imposed tariffs to nudge the core up 0.3% to an annual pace of 3%, above the Fed's 2% target.

"A hot print could further strengthen the dollar and cap gains in gold, though I suspect support will remain in place overall as investors seek to scoop up discounts," Simpson said.

Recent softer-than-expected U.S. jobs report boosted bets for a Fed rate cut in September. Markets imply around a 90% probability of a September easing, and at least one more cut by this year-end. 0#USDIRPR

Non-yielding gold thrives in a low-interest-rate environment.

Also on the radar are Sino-U.S. trade discussions as Trump's August 12 deadline for a deal between Washington and Beijing looms.

Meanwhile, COMEX gold speculators increased net long positions by 18,965 contracts to 161,811 in the week to August 5. CFTC/

On the technical front, spot gold may break support at $3,364 per ounce and fall towards the $3,314 to $3,342 range, according to Reuters technical analyst Wang Tao. TECH/C

Elsewhere, spot silver XAG= fell 0.9% to $37.97 per ounce, platinum XPT= slipped 1.3% to $1,314.75 and palladium XPD= eased 0.1% to $1,125.

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