PRECIOUS-Gold edges up as US data reinforces Fed rate-cut bets

By Pablo Sinha

Nov 25 (Reuters) - Gold prices ticked up on Tuesday as softer-than-expected U.S. retail sales data reinforced traders' expectations that the Federal Reserve will trim interest rates in December.

Spot gold was up 0.3% to $4,150.09 per ounce by 12:16 p.m. EST (1716 GMT). The price earlier in the day hit its highest level since November 14, and rose nearly 2% on Monday after some U.S. central bank policymakers signalled support for a third rate cut this year at their December 9-10 meeting.

U.S. gold futures for December delivery rose 1.3% to $4,147 per ounce.

"There's revived hope for a December rate cut based on recent dovish Fed speak, and this (data) doesn't seem to be changing that," said Peter Grant, vice president and senior metals strategist at Zaner Metals.

U.S. retail sales increased less than expected in September, taking a breather following a recent stretch of strong gains, while the Producer Price Index increased 2.7% in the 12 months through September, matching the advance in August.

Markets are pricing in an 83% chance of a Fed rate cut next month - compared to 30% last week - and a 64% probability of another reduction in borrowing costs in January, CME Group data showed. FEDWATCH

Fed Governor Stephen Miran said on Tuesday a deteriorating job market calls for further rate cuts, echoing dovish remarks from Fed Governor Christopher Waller on Monday.

Non-yielding gold tends to do well in an environment of low interest rates, and during geopolitical and economic instability.

"The underlying conditions of ongoing economic uncertainty, geopolitical turbulence and dovish Fed expectations continue to support gold prices (in the near term)," ActivTrades analyst Ricardo Evangelista said.

Spot silver was flat at $51.40 per ounce, platinum rose 0.4% to $1,550.31 and palladium gained 0.1% to $1,396.18.