Aug 20 (Reuters) - Futures linked to Canada's main stock

index fell on Tuesday as investor caution ahead of inflation

data weighed on risk appetite and countered gains in gold

prices.

September futures on the S&P/TSX index were down

0.1% at 6:29 a.m. ET (1029 GMT).

The materials sector is expected to grab focus, with gold

having hit a record high as the dollar weakened and investors

bought into the bullion amid bets of a U.S. rate cut.

Oil prices, however, eased on reduced fear over supply

disruptions after Israel accepted a proposal to resolve

disagreements blocking the ceasefire deal in Gaza.

The S&P/TSX composite index closed at a record

high on Monday, boosted by financial and metal mining shares.

Investors will be keeping an eye on the U.S. Federal Reserve

Chair Jerome Powell's commentary at the Jackson Hole Economic

Symposium on Friday, amid acknowledgments of a possible rate cut

in September.

Markets expect a 25-basis points reduction at the U.S.

central bank's policy meeting next month.

Reduced U.S. borrowing costs could help stimulate consumer

spending and corporate investments in the country, while also

prompting higher trade between the United States and Canada.

Back home, investors will also focus on Canada's consumer

price index numbers due at 8:30 a.m. ET.

The data is expected to show domestic inflation to be

moderate to 2.5% on a yearly basis, adding to the narrative of

cooling inflation and further solidifying bets for another cut

by the Bank of Canada.

In corporate news, Neo Performance Materials ( NOPMF ) has

agreed to sell majority equity interest of China rare earth

separation assets for $30 million.

COMMODITIES

Gold: $2,523.87; +0.80%

US crude: $74.39; 0.0%

Brent crude: $77.79; 0.2%

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1.3613

($1 = 1.3613 Canadian dollars)