*

Putin's no-show in Turkey throws Ukraine talks into

disarray

*

US dollar down 0.1%

*

US producer prices unexpectedly fall in April

*

Johnson Matthey says palladium market expected to move to

balance from deficit

(Updates prices as of 1141 ET)

By Sarah Qureshi

May 15 (Reuters) - Gold prices rose more than 1% on

Thursday, aided by a softer dollar and weak U.S. economic data,

while Russian President Vladimir Putin's failure to attend peace

talks drove some safe-haven buying.

Spot gold rose 1.2% to $3,216.11 an ounce by 1141

ET (15:41 GMT) after hitting a more than one-month low earlier

in the session.

U.S. gold futures gained nearly 1% to $3,218.70.

The dollar index slipped 0.1%, making dollar-priced

gold cheaper for overseas currency holders.

Data showed U.S. producer prices unexpectedly fell in April,

while retail sales growth slowed. Earlier this week, a report

showed consumer prices rose less than expected in April.

Markets are pricing the Federal Reserve to cut rates by

September. Lower interest rates help increase bullion's

attractiveness as it is a non-yielding asset.

Thursday's data creates more room for the Fed to cut rates,

with a more dovish expectation building in the market, said

Peter Grant, vice president and senior metals strategist at

Zaner Metals.

"Putin not attending the peace talks in Turkey dims

expectations of progress towards a peace deal, which I think is

helping to underpin gold prices today," Grant added.

Putin sent a second-tier team of negotiators to hold peace

talks with Ukraine in Turkey, spurning Kyiv's challenge to go

there in person to meet President Volodymyr Zelenskiy.

Analysts say investors remain cautious as global trade

tensions continue, although the U.S. and China have agreed to a

temporary tariff deal for 90 days.

Spot silver rose 0.6% to $32.42 an ounce,

platinum added 1.3% to $989.05 and palladium was

up 1.6% to $966.05.

The palladium market, which was in a deficit in 2012-2024,

will move into balance this year, with demand falling due to

lower production of gasoline vehicles and increased recycling in

China, Johnson Matthey said.