Aug 14 (Reuters) - Gold prices fell on Friday as investors

locked in profits after non-yielding bullion climbed to an over

two-month high in the previous session, with mild U.S. inflation

data undermining expectations of a September Federal Reserve

rate hike.

FUNDAMENTALS

* Spot gold was down 0.5% at $4,330.37 per ounce, as

of 0103 GMT, while U.S. gold futures for December

delivery slid 0.8% to $4,386.80.

* Bullion climbed to its highest point since June 5 on

Thursday, before settling 1.3% lower and wiping out its gains

for the week.

* U.S. producer prices were unchanged in July as goods

prices fell and the cost of services increased marginally,

bolstering market expectations that the Fed could keep interest

rates unchanged next month.

* The report from the U.S. Labor Department on Thursday

followed news of mild consumer inflation last month.

* Cleveland Fed President Beth Hammack reiterated her view

that the U.S. central bank should raise rates immediately to

restrain growth and too-high inflation.

* On the geopolitical front, Washington on Thursday

threatened to maintain a naval blockade of Iran indefinitely,

ratcheting up economic pressure on Tehran as ceasefire talks

have floundered.

* Highlighting persistent demand for the metal, gold is on

the rise again, as a confluence of economic and political

dynamics spurs demand from investors around the world,

especially one cohort: central banks.

* Underscoring robust central bank interest in gold, the

Bank of Korea bought and held 679,765 shares of SPDR Gold Trust,

valued at roughly $250.4 million as of end-June, a U.S. SEC

filing showed, marking its first disclosed gold investment since

buying physical gold in 2013.

* Venezuelan authorities plan to focus on reconstruction

efforts and recovering gold reserves worth an estimated $4

billion held in the Bank of England's underground vaults,

National Assembly chief Jorge Rodriguez said on Wednesday, as

monthly inflation surged to 20%.

* In other metals, spot silver slipped 0.8% to $63.92

per ounce.

* Platinum decreased 1% to $1,700.60, while palladium

eased 0.3% to $1,303.25, both at their lowest levels

since August 4.

DATA/EVENTS (GMT)

0900 EU Total Trade Balance SA June

0900 EU GDP Flash Estimate QQ, YY Q2

1230 US Retail Sales MM July

1400 US U Mich Sentiment Prelim August