PRECIOUS-Gold drops as investors brace for US jobs and inflation numbers

By Anmol Choubey

Feb 10 (Reuters) - Gold fell more than 1% on Tuesday as the market consolidated ahead of U.S. jobs and inflation data that could offer further clues to the Federal Reserve's interest‑rate outlook.

Spot gold XAU= fell 1% to $5,014.19 per ounce by 11:10 a.m. ET (1610 GMT). U.S. gold futures GCcv1 for April delivery were down 0.8% to $5,037.20 per ounce.

"We're seeing a light pullback or consolidation ahead of a bevy of key economic data coming out later this week," said David Meger, director of metals trading at High Ridge Futures.

January's nonfarm payroll data is due on Wednesday, with economists expecting 70,000 jobs to have been added last month, according to a Reuters poll. January's Consumer Price Index (CPI) is due on Friday.

U.S. retail sales were unexpectedly unchanged in December, putting consumer spending and the overall economy on a slower growth path heading into the new year.

A softer economic outlook has strengthened expectations of lower interest rates, with traders pricing in two 25-basis-point rate cuts this year. Lower rates typically support non‑yielding bullion by reducing the opportunity cost of holding the metal. FEDWATCH

Meger said the "weakness in the U.S. dollar will likely continue to underpin prices," noting that geopolitical tensions and expectations for lower interest rates still provide support for gold, alongside the psychological $5,000 level. USD/

White House economic adviser Kevin Hassett said on Monday that U.S. job gains could be lower in the coming months due to slower labor force growth and higher productivity.

Indian investors piled into gold exchange-traded funds in January as prices soared, surpassing flows into equity funds for the first time, industry data showed on Tuesday.

Spot silver XAG= slipped 3.3% to $80.60 an ounce, after rising nearly 7% in the previous session.

Spot platinum XPT= shed 1.1% to $2,099.93 per ounce, while palladium XPD= lost 1.3% to $1,717.33.