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Bullion hit an all-time high of $2,483.60 on Wednesday

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U.S. dollar index up 0.2%

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Markets see a 98% chance of a Fed rate cut in September -

CME

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Silver, platinum and palladium set for weekly declines

(Recasts as of 1025)

By Sherin Elizabeth Varghese

July 19 (Reuters) - Gold prices dipped more than 1% on

Friday, as the dollar firmed and some investors locked in

profits following the metal's recent surge on increasing

expectations of U.S. interest-rate cuts in September.

Spot gold was down 1.4% to $2,411.78 per ounce by

1025 GMT. Bullion hit an all-time high of $2,483.60 on

Wednesday.

U.S. gold futures fell 1.7% to $2,414.70.

The U.S. dollar inched 0.2% higher, while benchmark

10-year Treasury yields also climbed, putting

pressure on bullion.

"It appears to be a combination of factors, including a

stronger U.S. dollar, rising U.S. yields, easing geopolitical

tensions, and potential profit-taking, all contributing to

gold's weakness ahead of the weekend," said Zain Vawda, market

analyst at MarketPulse by OANDA.

"If prices close below $2400 today, reaching $2500 in the

near-term could prove challenging."

Markets see a 98% chance of a rate cut by the U.S. Federal

Reserve in September, according to the CME FedWatch Tool.

Non-yielding bullion's appeal tends to shine in a low-interest

rate environment.

Earlier this week, Fed Chair Jerome Powell said recent

inflation readings "add somewhat to confidence" that the pace of

price increases is returning to the central bank's target in a

sustainable fashion.

"In the near term, I expect gold to remain supported above

$2,400," said Ricardo Evangelista, senior analyst at

ActivTrades.

If U.S. GDP data due next week shows a slowdown in economic

activity, gold could return to or hover around the record high

it hit on Wednesday, Evangelista added.

Another factor that could influence gold is traders' belief

U.S. presidential candidate Donald Trump will win the November

polls, and the more protectionist global affairs and trade

stance that could come with that, according to Evangelista.

"This is very positive for the dollar and it affects gold,

of course," he said.

Spot silver fell 2.9% to $29.19 per ounce and

platinum eased 0.8% to $959.66, while palladium

lost 0.7% to $922.96. All three metals were headed for weekly

declines.