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Trump will seek to squeeze Ukraine ceasefire deal out of

Putin

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US retail sales increase solidly in July

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Silver set for weekly loss

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Palladium down over 2%

(Updates for US morning hours)

By Ashitha Shivaprasad

Aug 15 (Reuters) - Gold prices inched up on Friday, but

were headed for a weekly loss after hot inflation data trimmed

rate-cut bets, while the market focus shifted to upcoming talks

between U.S. President Donald Trump and his Russian counterpart

Vladimir Putin.

Spot gold rose 0.2% to $3,343.83 per ounce by 9:01

a.m. EDT (1301 GMT), but was down 1.6% for the week.

U.S. gold futures edged up 0.2% at $3,390.80.

The U.S. dollar eased, making dollar-denominated commodities

more affordable for holders of other currencies.

Data on Thursday showed that U.S. producer prices increased

by the most in three years in July. Traders currently see a

92.6% chance of a 25-basis-point rate cut by the Federal Reserve

in September, compared to a fully priced 25-bps cut and a 5%

chance of a larger 50-bps move before the data.

Non-yielding gold prices fell following the data release,

with spot gold closing 0.6% lower.

"Although gold prices stabilized on Friday, more pain could

be around the corner depending on how the summit between Trump

and Putin in Alaska plays out," said Lukman Otunuga, senior

research analyst at FXTM.

Trump and Putin are set to meet at a Cold War-era air force

base in Alaska to discuss a ceasefire deal for Ukraine.

Geopolitical uncertainty and low interest rates generally

boost demand for gold.

Analysts at ANZ said macroeconomic and geopolitical risks

would intensify in the second half of this year, enhancing

gold's haven appeal.

"Gold's bullish outlook remains intact, supported by the

prospect of rising tariffs, a slowing global economy, easing of

U.S. monetary policy and persistent weakness in the U.S.

dollar," ANZ said.

Meanwhile, U.S. retail sales increased solidly in July,

though a softening labor market and higher goods prices could

curb growth in consumer spending in the third quarter.

Spot silver fell 0.4% to $37.85 per ounce and was

down more than 1% so far for the week. Platinum lost 1%

to $1,344.14, and palladium fell 2.3% to $1,119.37.