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Gold fell more than 5% on Tuesday

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Focus on US inflation data, due on Friday

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Planned Trump-Putin summit on hold

(Updates with latest prices, adds graphics)

By Anmol Choubey and Sherin Elizabeth Varghese

Oct 22 (Reuters) - Gold prices extended declines on

Wednesday, following their steepest daily fall since 2020 in the

previous session, after an initial recovery gave way to renewed

selling with investors locking in profits and a stronger dollar

adding pressure.

Spot gold was down 2.6% at $4,017.29 per ounce, as of

1103 GMT, reaching a near two-week low, after rising as much as

$4,161.17 earlier in the session. U.S. gold futures for

December delivery fell 1.9% to $4,032.80 per ounce.

The U.S. dollar index rose 0.2% to a one-week high,

making dollar-priced bullion more expensive.

Bullion prices fell 5.3% on Tuesday, after notching a record

high of $4,381.21 in the preceding session. Prices have gained

54% so far this year, supported by geopolitical and economic

instability, U.S. rate-cut expectations, and robust ETF inflows.

"Strong gains that we saw in recent weeks meant that from a

technical perspective, gold prices had entered the overbought

territory and this led many traders to close positions in order

to lock in profits," said ActivTrades analyst Ricardo

Evangelista.

On the technical front, gold is supported by the 21-day

moving average at $4,005.

Investors are awaiting the U.S. Consumer Price Index (CPI)

report, due on Friday, which could offer insights into the

Federal Reserve's trajectory for rate cuts. Gold, a non-yielding

asset, tends to benefit in low-interest rate environments.

A Reuters poll of economists suggests the Fed will lower its

key interest rate by 25 basis points next week and again in

December.

Meanwhile, a planned summit between U.S. President Donald

Trump and his Russian counterpart Vladimir Putin was put on hold

on Tuesday, while uncertainty surrounds a possible meeting

between Trump and Chinese President Xi Jinping.

"We are still in an era that is fraught with

uncertainties, and that will most likely mean that any

substantial dips... will generate fresh buying interest," StoneX

analyst Rhona O'Connell said.

In other metals, spot silver dropped 1.8% to $47.84

per ounce. It slipped 7.1% on Tuesday.

Platinum fell 1.4% to $1,530.35, while palladium

was down 1.2% to $1,391.00.