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Fed chief reiterates go-slow approach on further rate cuts

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Bullion hit record high of $2,942.70 on Tuesday

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US CPI data due at 1330 GMT

(Adds graphics, details and updates with mid-session trading)

By Anushree Mukherjee

Feb 12 (Reuters) - Gold prices retreated on Wednesday

from an all-time high hit in the previous session, as Federal

Reserve Chair Jerome Powell's hawkish comment cemented views of

slower rate cuts this year, while investors awaited a key U.S.

inflation report.

Spot gold fell 0.4% to $2,885.53 per ounce by 0504

GMT. Bullion climbed to a record high of $2,942.70 on Tuesday.

U.S. gold futures eased 0.8% to $2,910.70.

Powell said on Tuesday the economy is in a good place and the

Fed isn't rushing to cut interest rates further, but is prepared

to do it if inflation drops or the job market weakens.

Bullion is considered a hedge against inflation, but higher

interest rates dampen the non-yielding asset's appeal.

"There is an element of profit-taking on gold following its

all-time highs and ahead of the next batch of U.S. inflation

data, which shapes as a possible risk event for the precious

metal if core CPI happens to produce an upside beat," said Tim

Waterer, chief market analyst at KCM Trade.

The U.S. Consumer Price Index (CPI) report is due at 1330

GMT later in the day. The CPI likely rose 0.3% in January,

following a 0.4% gain in the prior month, a Reuters poll showed.

Investors are closely watching for the Producer Price Index

(PPI) data due on Thursday and Powell is also due to testify

before Congress later in the day.

Mexico, Canada and the European Union on Tuesday condemned

U.S. President Donald Trump's decision to impose tariffs on all

steel and aluminium imports next month, which has fanned fears

of a major global trade war as investors brace for more trade

duty announcements.

"The bullish trend (in gold) remains intact given the tariff

picture uncertainty and the resulting safe-haven flows, which

could keep underpinning the precious metal," Waterer said.

Spot silver eased 0.2% to $31.83 per ounce, platinum

lost 0.5% to $978.06 and palladium fell 0.2% to

$973.54.