BENGALURU Gold prices eased on Tuesday as profit-taking kicked in after bullion hit a more than one-week high, while market players awaited key US inflation data that could provide further insight into the Federal Reserve's next policy decision.

Spot gold fell 0.4% to US$2,462.19 per ounce by 0259 GMT, after hitting its highest level since Aug 2 earlier in the session. Prices rose more than 1% in the previous session.

US gold futures were little changed at US$2,502.40.

"Gold had a solid start to the week, though it eased moderately on some gentle profit-taking," said Tim Waterer, chief market analyst at KCM Trade.

"Prices will benefit if the US inflation data comes in on the softer side of the ledger, which would reignite hopes of an aggressive rate cut from the Fed in September."

Traders are waiting for July US producer price figures due later in the day and consumer price index (CPI) numbers on Wednesday, to gauge the chance of outsized rate cuts. The CPI data is expected to show that headline and core prices rose 0.2% month-on-month.

Markets see about 50% chance of a 50 basis points (bps) rate cut in September, according to the CME FedWatch Tool. A low interest rate environment tends to boost non-yielding bullion's appeal.

"If markets become more optimistic of a 50 bps cut coming to fruition, this could propel the gold price to make a run at the US$2,500 level," Waterer said.

On the geopolitical front, Israeli Prime Minister Benjamin Netanyahu traded barbs with his defence minister, underscoring the deep internal splits that continue to plague the government, as the war in Gaza risks spilling out into a wider regional conflict.

Among other metals, spot silver fell 1.2% to US$27.67 per ounce, platinum edged 0.3% lower to US$933.96, and palladium shed 0.6% to US$914.25.

  - Reuters