* Israel and Iran to halt attacks on each other

* Goldman Sachs expects next Fed rate cut in 2027

* U.S. May Consumer Price Index due on Wednesday

(Updates prices as of 0404 GMT)

By Pablo Sinha

June 9 (Reuters) - Gold prices were largely steady on

Tuesday as traders assessed a fragile ceasefire between Israel

and Iran and also watched out for signs of progress in the

broader Middle East conflict, with concerns over inflation and

interest rate hikes in focus.

Spot gold was up 0.1% at $4,333.91 per ounce, as of

0404 GMT. In the previous session, bullion touched its lowest

point in more than two months.

U.S. gold futures for August delivery were down 0.1%

at $4,358.80.

"Gold is trading muted, with traders sceptical about the

durability of the Iran-Israel ceasefire and remaining cautious

ahead of this week's important U.S. inflation data, which will

help shape the Fed's policy outlook," said Tim Waterer, chief

market analyst at KCM Trade.

Iran and Israel said on Monday they had halted attacks on

each other after an appeal from U.S. President Donald Trump,

though Tehran warned it would resume hostilities if Israel

continued to hit Hezbollah in Lebanon.

Goldman Sachs said it expects the U.S. Federal Reserve to

keep interest rates unchanged through 2026 and delay rate cuts

until 2027, citing stronger economic activity and jobs growth.

Traders are now pricing in a more than 70% chance of a Fed

rate hike by December, according to the CME FedWatch tool.

Investors are bracing for May's U.S. Consumer Price Index

data, due on Wednesday, to gauge the Fed's monetary policy path.

"A return to $5,500 for gold remains viable by year-end

driven in part by central bank demand, but it will likely

require cooperation from oil prices, bond yields and the dollar,

which would all need to take a turn lower," Waterer said.

Spot silver fell 0.5% to $67.85 per ounce, platinum

lost 0.1% to $1,752.45, while palladium rose 1% to

$1,216.42.