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Bullion hit all-time high of $2,365.09 per ounce on

Tuesday

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Markets are now adjusting to the high-for-longer rate

scenario -

analyst

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Silver hit its highest levels since June 2021 on Wednesday

(Recasts, adds analyst comment and updates prices, as of 0317

GMT)

By Sherin Elizabeth Varghese

April 11 (Reuters) - Gold prices climbed on Thursday,

recouping losses from the previous session, as geopolitical

tensions bolstered demand for the safe-haven metal.

Spot gold was up 0.6% at $2,345.56 per ounce, as of

0317 GMT. Bullion hit a record high for an eighth consecutive

session until Tuesday. U.S. gold futures also gained

0.6% to $2,362.80.

"Higher-than-expected consumer prices for the third straight

month this year continues to test the Fed's inflation

tolerance," said IG market strategist Yeap Jun Rong.

Data overnight showed U.S. inflation in March once again

came in hotter than expected, decimating the chance of a rate

cut in June. Core CPI advanced 0.4%, above forecasts of a 0.3%

rise.

"Markets are now adjusting to the high-for-longer rate

scenario, which translates to some near-term profit-taking in

gold prices overnight," Jun Rong said, adding that the downside

seems limited into the session as market participants still

perceive gold as a good hedge against geopolitical tensions.

Strong central bank buying, safe-haven inflows amid

continued geopolitical risks, and demand from momentum-following

funds have fuelled bullion's 14% gain so far this year.

Fed officials worried last month that progress on inflation

might have stalled, making a longer period of tight monetary

policy necessary, according to the minutes of the U.S. central

bank's March 19-20 meeting.

Along with the recent hot inflation data, a strong U.S. jobs

report last week that blew past forecasts also stirred more

questions on the feasibility of rate cuts this year.

Higher interest rates reduce the appeal of holding

non-yielding gold.

Spot silver edged 0.2% higher to $28.03 per ounce,

after hitting its highest levels since June 2021 on Wednesday.

Platinum rose 1% to $968.90 and palladium

gained 0.3% to $1,054.10.