PRECIOUS-Gold firms as soft US data pressures dollar, fuels rate-cut bets

Aug 13 (Reuters) - Gold prices inched higher on Wednesday, supported by a weaker dollar after tame U.S. inflation data cemented bets for an interest rate cut in September, although a trade war truce between Washington and Beijing kept bullion's gains in check.

FUNDAMENTALS

* Spot gold XAU= was up 0.1% at $3,347.09 per ounce, as of 0112 GMT. U.S. gold futures GCcv1 for December delivery were steady at $3,397.50.

* Data released on Tuesday showed that the U.S. Consumer Price Index (CPI) rose 0.2% in July, following a 0.3% increase in June. On a year-over-year basis, the CPI climbed 2.7%.

* Economists polled by Reuters had expected the CPI to rise 0.2% in July and increase 2.8% year-on-year.

* The dollar index =USD stood at 98.02, after falling roughly 0.5% on Tuesday. A weaker dollar make greenback-denominated assets more affordable to holders of other currencies.

* Markets are pricing in about a 90% chance of a rate cut in September, with at least one additional cut expected by the end of the year. 0#USDIRPR

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

* U.S. President Donald Trump has nominated White House adviser Stephen Miran to temporarily fill a vacant board seat at the Federal Reserve, stirring up speculation about presidential interference in monetary policy.

* Meanwhile, Kansas City Fed President Jeffrey Schmid said the U.S. central bank should not take tariffs' muted effect on inflation so far as an opportunity to cut interest rates, but rather as a sign that monetary policy is "appropriately calibrated."

* The United States and China have extended a tariff truce for another 90 days, staving off triple-digit duties on each other's goods.

* Focus now shifts to U.S. economic data, scheduled for later this week, including the U.S. Producer Price Index, weekly jobless claims, and retail sales.

* Elsewhere, spot silver XAG= edged 0.1% higher to $37.92 per ounce, platinum XPT= rose 0.2% to $1,338.75 and palladium XPD= eased 0.1% to $1,128.15.

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