*

US CPI data due at 1230 GMT

*

Gold heads for biggest weekly percentage fall since

November

2024

*

Silver down 7.2% so far this week

(Updates for EMEA morning session)

By Anmol Choubey

Oct 24 (Reuters) - Gold prices dropped more than 1% on

Friday and were poised to break a nine-week winning streak as

investors booked profits and signs of easing trade tensions

between the U.S. and China tempered safe-haven demand ahead of a

key U.S. inflation report.

Spot gold was down 1.5% at $4,063.46 per ounce by

0854 GMT, marking a 4.3% decline so far this week, its largest

weekly percentage drop since November 2024. U.S. gold futures

for December delivery fell 1.7% to $4,077.10 per ounce.

Bullion has gained 55% this year, driven by ongoing

geopolitical turmoil, central bank purchases and expectations of

U.S. interest rate cuts. Spot prices notched a record high of

$4,181.21 on Monday, after climbing past the $4,000/oz mark for

the first time this month.

"The rally of the last few weeks has been too quick, and

investors are betting that the trade tension between the U.S.

and China can slow down," said Carlo Alberto De Casa, external

analyst at banking group Swissquote.

"Investors that have achieved massive gains are taking

profit or at least reducing their exposure on gold."

The White House confirmed on Thursday that U.S. President

Donald Trump will meet Chinese President Xi Jinping next week

during his Asia trip, easing doubts about the meeting amid

heightened trade tensions.

Traders are also awaiting the latest U.S. Consumer Price

Index report, due at 1230 GMT, which is expected to show solid

consumer price growth for September.

Markets still anticipate the Federal Reserve will cut

interest rates by 25 basis points at its meeting next week.

Gold typically benefits from lower interest rates, which

reduce the opportunity cost of holding non-yielding bullion.

"Even if short-term corrections emerge, the broader trend

(for gold) remains firmly upward, underpinned by strong

fundamentals," said Russell Shor, senior market analyst at

Tradu.

The dollar index was up 0.6% for the week, making

gold more expensive for other currency holders.

Elsewhere, spot silver fell 1.6% to $48.13 per ounce

and was on track for its worst week since March, down 7.2% so

far. Platinum slipped 1.1% to $1,610.59 on Friday and

palladium lost 3.8% to $1,401.18.