Sept 14 (Reuters) - Gold prices firmed on Thursday as
the dollar and Treasury yields weakened after the U.S. inflation
data cemented the case for a Federal Reserve rate pause next
week, although bullion was not far from a near three-week lows
seen in the previous session.
   
    FUNDAMENTALS
    * Spot gold        added 0.3% to $1,912.09 per ounce by 0110
GMT, having hit its lowest level since Aug. 25 on Wednesday at
$1,905.10. U.S. gold futures         were up 0.1% at $1,933.70.
    * The U.S. dollar index and 10-year Treasury yields eased
after U.S. consumer prices increased by the most in 14 months in
August as the cost of gasoline surged, but the annual rise in
underlying inflation was the smallest in nearly two years, 
suggesting a Fed rate pause next week.             
    * Fed officials hoping for evidence of a clear decline in
inflation and a slowing economy got some of each from data since
their last meeting, but likely not enough of either to downplay
the possible need for further rate increases later this year. 
    * Traders now see a 96% chance of the Fed leaving rates
unchanged on Wednesday, while bets of a pause in November were
at 51%, according to the CME's FedWatch Tool.
    * The European Central Bank is set to decide on Thursday
whether to raise its key interest rate to a record peak in what
should be its final step in the fight against inflation, or take
a break as the economy deteriorates. 
    * SPDR Gold Trust      , the world's largest gold-backed
exchange-traded fund, said its holdings fell 0.3% to 882.00
tonnes on Wednesday.          
    * Elsewhere, spot silver        rose 0.3% to $22.89 per
ounce, platinum        gained 0.2% to $902.05 and palladium
       eased 0.2% to $1,257.26.


DATA/EVENTS (GMT)
1215  EU         ECB Refinancing, Deposit Rates   Sept
1230  US         Initial Jobless Clm              Weekly
1230  US         PPI Machine Manuf'ing            Aug
1230  US         Retail Sales MM                  Aug  

 (Reporting by Swati Verma in Bengaluru; Editing by Sherry
Jacob-Phillips)