Gold prices held firm on Tuesday near a two-week high hit in the previous session, helped by a subdued dollar, while investors awaited U.S. inflation data that could provide cues on the Federal Reserve's interest rate hike path.

FUNDAMENTALS

* Spot gold rose 0.1% to $1,725.70 per ounce, as of 0041 GMT.

* U.S. gold futures were down 0.2% at $1,736.80.

* The dollar index hovered close to its lowest level since Aug. 26, making the greenback-priced gold less expensive for overseas buyers.

* U.S. consumer price data, due at 1230 GMT, is expected to show headline inflation rose 8.1% year-over-year in August versus 8.5% in July.

* Fed will deliver another 75-basis-point interest rate hike next week and likely hold its policy rate steady for an extended period once it eventually peaks, according to a Reuters poll of economists released on Tuesday.

* Higher interest rates increase the opportunity cost of holding the non-yielding bullion and boosts the dollar.

* Germany's economy, Europe's largest, will contract next year as a dramatic rise in energy costs due to the war in Ukraine extinguishes the chances of recovery after pandemic-related lockdowns, the Ifo institute said on Monday.

* Holdings of SPDR Gold Trust , the world's largest gold-backed exchange-traded fund, fell 0.18% to 964.91 tonnes on Monday from 966.64 tonnes on Friday.

* The London Bullion Market Association (LBMA) said on Monday that trade in precious metals in London would be suspended on Sept. 19, the day of Queen Elizabeth's funeral.

* Spot silver rose 0.3% to $19.84 per ounce. Platinum slipped 0.4% to $903.82 and palladium fell 0.3% to $2,259.04.

 (Reporting by Eileen Soreng in Bengaluru; Editing by Rashmi Aich)