• US CPI data due at 1330 GMT
• Goldman Sachs bullish on gold, but flags downside risk
• Gold showing signs of revival -analyst

Dec 11 (Reuters) - Gold prices were flat on Wednesday as investors awaited a U.S. inflation print that could influence the likelihood of a Federal Reserve's interest rate cut next week and offer clues on the central bank's 2025 outlook.

Spot gold was steady at $2,695.91 per ounce, as of 1216 GMT, having hit its highest since Nov. 25 earlier in the session. U.S. gold futures rose 0.4% to $2,727.80.

Markets are focused on upcoming inflation numbers, with a 25-basis-point Fed rate cut next week already priced in, said StoneX analyst Rhona O'Connell, adding that attention will be on Chair Powell’s post-meeting commentary next week for further policy insights.

The U.S. Consumer Price Index (CPI) data is due at 1330 GMT, with the core CPI projected to have risen 0.3% on a month-on-month basis and 3.3% annually.

"An expected (CPI) number pretty much gives the Fed green light to cut (interest rates) next week and that might be the catalyst we need to see for gold," said Kyle Rodda, financial market analyst at Capital.com.

According to the CME Group's FedWatch Tool , opens new tab, markets are pricing an 86% chance of a quarter-point rate cut next week.

Goldman Sachs flagged fewer Fed rate cuts as the main downside risk to its 2025 year-end gold forecast of $3,000 per ounce, rather than a stronger dollar.

"Gold would rise to just $2,890/toz if the Fed cuts only one more time."

Bullion tends to benefit from lower interest rates and thrives during economic and geopolitical turmoil.

Gold has been stagnant but is showing signs of revival, with a rally this week driven by Syria's regime change and reports of China resuming gold purchases, pushing prices to the upper end of their range without breaking higher, O'Connell added.

Spot silver shed 0.5% to $31.74 per ounce, platinum dropped 1.1% to $932.35 and palladium fell 0.3% to $965.59.

Sign up here.

https://www.reuters.com/markets/commodities/gold-touches-two-week-peak-us-inflation-data-focus-2024-12-11/