(Updates for Americas morning session)

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Gold hit record high of $4,381.21 per ounce on Monday

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Focus is on US inflation data due on Friday

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Trump to meet China's President Xi Jinping next week in

South

Korea

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Silver down more than 8%

By Noel John and Sherin Elizabeth Varghese

Oct 21 (Reuters) -

Gold prices were on track for the steepest daily fall in

five years on Tuesday, as the dollar rose and investors booked

profits after expectations of U.S. interest rate cuts and

sustained safe-haven demand drove the yellow metal to a fresh

record high in the previous session.

Spot gold was down 5.5% to a one-week low of

$4,115.83 per ounce as of 10:51 a.m. EDT (1451 GMT), its

steepest fall since August 2020.

U.S. gold futures for December delivery fell 5.3%

to $4,129.20 per ounce.

Prices scaled an all-time peak of $4,381.21 on Monday and

have gained about 60% this year, bolstered by geopolitical and

economic uncertainty, rate-cut bets and sustained central bank

buying.

"Gold dips were being bought as recently as yesterday, but

the sharp jump in volatility at the highs over the past week is

flashing caution and may encourage at least short-term

profit-taking," said Tai Wong, an independent metals trader.

The dollar index rose 0.4%, making bullion more

expensive for holders of other currencies.

Wall Street looked poised for a calm start, with futures

trimming earlier losses as investors assess a wave of largely

positive earnings from corporate giants.

"Better risk appetite in the general marketplace early this week

is bearish for the safe-haven metals," Jim Wyckoff, senior

analyst at Kitco Metals, said in a note.

Spot silver dropped 8.4% to $48.06 per ounce.

"Silver is stumbling badly today and has dragged the entire

complex lower," Wong said.

"It appears we have a short-term top at $54 and while

sentiment wobbles under $50, silver is likely to trade sideways

with substantial volatility as long as gold remains relatively

firm."

Elsewhere, platinum shed 7% to $1,523.30 and

palladium lost 6.6% to $1,398.

Traders now await the release on Friday of the U.S. Consumer

Price Index report for September, which was delayed due to the

ongoing U.S. government shutdown. It is expected to show a 3.1%

year-on-year rise. Markets expect the Federal Reserve will cut

interest rates by 25 basis points at its policy meeting next

week.

Gold, a non-yielding asset, tends to benefit in a low

interest rate environment.

Investors are also looking to U.S. President Donald Trump's

upcoming meeting with Chinese President Xi Jinping next week.