PRECIOUS-Gold heads for weekly loss, spotlight on Trump-Putin talks

By Ashitha Shivaprasad

Aug 15 (Reuters) - Gold prices held steady on Friday, but were headed for a weekly loss after hot inflation data trimmed rate-cut bets, while the market focus shifted to talks between U.S. President Donald Trump and his Russian counterpart Vladimir Putin.

Spot gold XAU= was little changed at $3,336.66 per ounce by 1:40 p.m. EDT (1740 GMT), and was down 1.8% for the week.

U.S. gold futures GCcv1 settled almost flat at $3,382.6.

The U.S. dollar eased, making dollar-denominated commodities more affordable for holders of other currencies. USD/

Data on Thursday showed U.S. producer prices increased by the most in three years in July. Traders see a 89.1% chance of a 25-basis-point rate cut by the Federal Reserve in September, down from about 95% before the data was released.

Non-yielding gold prices fell following the data release, with spot gold closing 0.6% lower.

"Although gold prices stabilized on Friday, more pain could be around the corner depending on how the summit between Trump and Putin in Alaska plays out," said Lukman Otunuga, senior research analyst at FXTM.

Trump headed to Alaska for what he called a "high-stakes" summit on Friday with Putin to discuss a ceasefire deal for Ukraine.

Geopolitical uncertainty and low interest rates generally boost demand for gold.

Analysts at ANZ said macroeconomic and geopolitical risks would intensify in the second half of this year, enhancing gold's haven appeal.

"Gold's bullish outlook remains intact, supported by the prospect of rising tariffs, a slowing global economy, easing of U.S. monetary policy and persistent weakness in the U.S. dollar," ANZ said.

U.S. retail sales increased solidly in July, though a softening labor market and higher goods prices could curb growth in consumer spending in the third quarter.

Spot silver XAG= fell 0.1% to $37.96 per ounce and was down 1% for the week. Platinum XPT= lost 1.5% to $1,336.80, and palladium XPD= fell 2.6% to $1,116.52.