*

US producer price index data due at 1230 GMT

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Dollar hit more-than-three-year low

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US to pull some Middle East personnel as Iran tensions

rise

(Updates prices for EMEA session)

By Anushree Mukherjee

June 12 (Reuters) - Gold prices rose 1% to a one-week

high on Thursday as tensions in the Middle East and trade

uncertainties fuelled demand for the safe-haven asset.

Spot gold was up 0.9% at $3,382.61 an ounce as of

1123 GMT, after hitting its highest level since June 5 earlier

in the day.

U.S. gold futures climbed 1.8% to $3,403.0.

The U.S. dollar index fell 0.8% to a

more-than-three-year low, making dollar-priced bullion more

attractive to overseas buyers.

"You have Middle East tensions and equity markets dropping

because of renewed uncertainty about the trade situation. All of

that is helping to boost the appeal of haven assets," said Fawad

Razaqzada, market analyst at City Index and FOREX.com.

U.S. President Donald Trump said on Wednesday he might

extend the July 8 deadline for completing trade talks with

countries before higher U.S. tariffs take effect, while letters

to other countries to accept or reject trade terms would soon be

sent out.

Washington and Beijing have agreed on a framework to restore

a fragile truce in the U.S.-China trade war, potentially

avoiding higher tariffs.

In a sign of increased Middle East volatility, Trump said on

Wednesday U.S. personnel were being moved out of the region as

it could be a "dangerous place" and that the United States would

not allow Iran to have a nuclear weapon.

Gold, a safe-haven asset, often thrives during times of

economic uncertainty and in low-interest-rate environments.

Investors are now turning their focus to the U.S. Producer

Price Index (PPI) data due at 1230 GMT, ahead of the Federal

Reserve's meeting on June 17-18.

"PPI will be watched to see whether they can spring a

CPI-like surprise or whether expectations for rising input

prices will be confirmed," said Ole Hansen, head of commodity

strategy at Saxo Bank.

Elsewhere, spot silver was steady at $36.24 per

ounce, platinum rose 0.7% to $1,264.57, hovering at a

more-than four-year high, while palladium was down 1.7%

at $1,062.04.