* All precious metals head for weekly loss

* Sustained break below $4,000 could see bears test $3,886,

analyst says

* Traders see 61% chance of a September rate hike - CME

FedWatch

(Rewrites for EMEA morning hours)

By Sumit Saha

June 26 (Reuters) - Gold prices gained on Friday as recent

U.S. inflation data weighed on the dollar and led markets to

slightly trim rate-hike bets.

However, the bullion stayed on course for a fourth straight

weekly fall, having slipped to a more than seven-month low

earlier this week.

Spot gold was up 0.3% at $4,038.48 an ounce as of

0914 GMT. U.S. gold futures for August delivery rose

0.2% to $4,053.80/oz.

Bullion slipped below the $4,000-mark on Wednesday for the

first time since November 2025 and is set for a weekly loss of

about 2.5% as the dollar climbed to its strongest level in over

a year on the same day.

Gold is trading near $4,000 for a third consecutive session,

with investor sentiment still shaken by the recent sell-off as

markets adjust to the twin headwinds of a hawkish Fed and a

stronger dollar, Saxo Bank analyst Ole Hansen said.

The U.S. dollar held near recent highs despite a modest dip

after the release of the Fed's preferred inflation gauge on

Thursday led markets to slightly scale back Fed rate-hike

expectations.

Markets still expect three Federal Reserve rate hikes this

year, with CME FedWatch showing a roughly 61% chance of a

September increase, down from 69% before the U.S. personal

consumption expenditure data.

"While the technical breakdown continues to weigh on

sentiment, continued declines in energy prices and softer bond

yields may eventually reduce pressure on the Federal Reserve to

tighten policy further, potentially offering some support to the

precious metal," added Hansen.

Crude prices have fallen more than 2% as supply concerns

ease following the exit of more stranded oil tankers through the

Strait of Hormuz.

A sustained break below $4,000 could see bears test $3,886

support, while a bearish "death cross" may reinforce downside

momentum, leaving prices vulnerable to the $3,600-$3,700 range

in the months ahead, said Han Tan, chief market analyst at

Bybit.

Among other metals, spot silver lost 0.01% to $57.86

per ounce, platinum gained 0.7% to $1,612.62, and

palladium rose nearly 2% to $1,207.96. All metals were

headed for a weekly loss.