PRECIOUS-Gold rises on increasing Fed rate-cut bets, weaker dollar

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Rate cut bets rise after mild July inflation

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Trump meets Putin on Friday to discuss war in Ukraine

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US and China extend tariff truce by 90 days

(Updates for EMEA morning session)

By Anmol Choubey

Aug 13 (Reuters) - Gold rose on Wednesday as expectations of a U.S. Federal Reserve interest rate cut in September gained traction following mild inflation data, while a weaker dollar bolstered bullion's demand.

Spot gold gained 0.3% to $3,354.77 per ounce, as of 0802 GMT. U.S. gold futures for December delivery inched up 0.1% at $3,403.20.

"Market participants are starting to debate if the Fed will do a 50 basis point cut at its September meeting following the comments from U.S. Treasury Secretary Bessent yesterday, with a focus on incoming weaker U.S. economic data supporting that," said UBS commodity analyst Giovanni Staunovo.

Markets are pricing in a more than 90% chance of a Fed rate cut next month, after July's mild inflation bump signalled limited impact from U.S. import tariffs on consumer prices, with at least one additional reduction anticipated by year-end.

Gold, a non-yielding asset often viewed as a safe haven during times of economic or geopolitical uncertainties, typically benefits from a low-interest-rate environment.

The dollar index hit a two-week low, making greenback-priced bullion more affordable for overseas buyers.

Europe and Ukrainian leaders will speak with U.S. President Donald Trump at a virtual meeting on Wednesday ahead of his summit with Russian President Vladimir Putin, as they try to drive home the perils of selling out Kyiv's interests in pursuit of a ceasefire.

"Don't expect those talks to meaningfully influence the gold market, (they) might trigger some short-term volatility. Near-term prices are likely to move sideways, until incoming U.S. economic (data) starts to support a faster (Fed) rate cut cycle," Staunovo said.

Meanwhile, the U.S. and China extended their tariff truce by another 90 days, averting triple-digit duties on each other's goods.

Elsewhere, spot silver rose 1.3% to $38.39 per ounce, platinum was up 0.8% to $1,346.05 and palladium gained 0.4% to $1,133.72. (Reporting by Anmol Choubey in Bengaluru; Editing by Rashmi Aich)