PRECIOUS-Gold firms as dollar, yields slip after US PPI data

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U.S. CPI data due on Wednesday

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U.S. 10-year bond yields hit one-week low

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Gold looks poised to set new record high - analyst

(Updates throughout as of 1424 GMT)

By Rahul Paswan

Aug 13 (Reuters) - Gold prices steadied on Tuesday to hover close to an all-time high hit in July, as the dollar and Treasury yields crept lower after U.S. producer price data cemented hopes for a interest rate cut from the Federal Reserve in September.

Spot gold prices were down about 0.1% at $2,470 per ounce by 1424 GMT due to some profit-taking. Non-yielding gold touched a record high of $2,483.60 on July 17 and is up 20% so far this year.

U.S. gold futures for December delivery rose 0.2% to $2,508.70.

The dollar was down 0.2% against its rivals, making gold more attractive for other currency holders, while the Benchmark 10-year note yields slipped to a one-week low.

U.S. producer prices increased less than expected in July, indicating that inflation continued to moderate, data showed on Tuesday.

Traders now look forward to U.S. July consumer price index (CPI) data due on Wednesday and the retail sales data on Thursday for further direction on U.S. central bank's next policy move.

"Despite recent profit-taking, ongoing geopolitical tensions and recent volatility in the market along with the anticipated rate cut continue to drive investors toward safe-haven," said Alex Ebkarian, chief operating officer at Allegiance Gold.

"The US inflation data due tomorrow may raise expectations again, which could give the gold price a further tailwind. A new record high is therefore only a matter of time," Commerzbank said in a note.

According to the CME Group's FedWatch tool there's a 50% chance of a 50-basis-point rate cut in September. Non-yielding bullion's appeal tends to shine in a low interest rate environment.

Fears that the conflict in Gaza could turn into a broader Middle East war have escalated after the killing of Hamas leader Ismail Haniyeh in Iran last month.

Among other metals, spot silver fell 1.4% to $27.61 per ounce, platinum rose 0.2% to $937.95 and palladium rose 2.1% at $938.75.

(Reporting by Rahul Paswan in Bengaluru; Editing by Shailesh Kuber)