PRECIOUS-Gold steadies as soft US jobs report counters inflation pressure

(Recasts for US market open)

* US, Iranian attacks dent peace deal hopes

* US producer prices increase more than expected in May

* Traders see 69% chance of US rate hike in December

By Anushree Mukherjee

June 11 (Reuters) - Gold prices held nearly steady after hitting a six-month low on Thursday, as a soft U.S. jobs report offset pressure from strong inflation data and increased expectations of higher interest rates ahead of next week's Federal Reserve meeting. Spot gold was steady at $4,076.88 per ounce at 9:17 a.m. ET (1317 GMT), after hitting its lowest point since November 21 earlier in the session.

U.S. gold futures for August delivery were down 0.9% at $4,097.10. Data showed that U.S. weekly jobless claims rose to 229,000 for the week ended June 6, topping Reuters forecasts of 219,000.

"A weaker jobs market at this point would be supportive of gold prices," said David Meger, director of metals trading at High Ridge Futures.

But, "we saw inflation data both yesterday and today showing that inflationary pressures continue to rise; the potential for higher interest rates has been supporting the dollar and pressuring the gold market," he added. U.S. producer prices increased more than expected in May, while data on Wednesday showed U.S. consumer inflation also increased at its fastest pace in three years during the month, boosted by surging prices for energy-related products. Spot gold has been under pressure since the outbreak of the U.S.-Israeli war against Iran in late February, as rising oil prices fuel expectations of prolonged high interest rates. While gold is viewed as a hedge against inflation, higher interest rates tend to weigh on the metal.

Investors are awaiting next week's Fed meeting - Kevin Warsh's first as chair - where rates are expected to be held steady.

However, traders are currently pricing a 69% chance of a U.S. rate hike in December, according to the CME Group's FedWatch tool. On the geopolitical front, the U.S. and Iran traded air attacks, with President Donald Trump threatening more strikes if Tehran did not immediately agree to a peace deal. But Iranian sources said talks on a preliminary deal had intensified.

Spot silver fell 0.3% to $63.52 per ounce, platinum gained 0.4% to $1,670.85 and palladium climbed 1.7% to $1,236.58. (Reporting by Noel John in Bengaluru; Editing by Thomas Derpinghaus and Jonathan Ananda)