Nov 15 (Reuters) - Gold prices held firm on Wednesday following a sharp rise in the last session, as data showing slowing inflation in the U.S. bolstered the view that the Federal Reserve might be done with raising interest rates.

FUNDAMENTALS

* Spot gold held its ground at $1,962.97 per ounce, as of 0113 GMT after rising 0.9% overnight. U.S. gold futures were steady at $1,966.80.

* Data showed U.S. consumer prices were unchanged in October as Americans paid less for gasoline, and the annual rise in underlying inflation was the smallest in two years.

* On a year-on-year basis, the consumer price index (CPI) increased 3.2% after rising 3.7% in September. Economists polled by Reuters had forecast the CPI gaining 0.1% on the month and increasing 3.3% on a year-on-year.

* Softer-than-expected inflation print sent the dollar index to a more than two-month low, making gold less expensive for other currency holders. Benchmark U.S. 10-year Treasury yields slid to a near two-month low.

* U.S. rate futures on Tuesday priced in a 65% chance of a rate cut in May next year, compared with 34% late on Monday, according to the CME's FedWatch tool.

* Lower U.S. interest rates put pressure on the dollar and bond yields, increasing the appeal of non-yielding bullion.

* Fed officials, including Chair Jerome Powell, last week said they were still not sure if rates were high enough to finish the battle with inflation.

* Investors focus now shifts to U.S. retail sales data and producer price index (PPI) on Wednesday for more cues on Fed's interest rate outlook. Economists are forecasting a 0.1% gain in PPI last month, compared with a 0.5% increase in September.

* Spot silver rose 0.2% to $23.12 per ounce, while platinum eased 0.1% to $884.49. Palladium was flat at $1,016.40 per ounce.

DATA/EVENTS (GMT) 0200 China Urban Investment (YTD) YY Oct 0200 China Retail Sales YY Oct 0200 China Unemp Rate Urban Area Oct 0700 UK Core CPI YY Oct 0700 UK CPI YY Oct 0745 France CPI (EU Norm) Final MM, YY Oct 1000 EU Total Trade Balance SA Sept 1100 EU Reserve Assets Total Oct 1330 US PPI Machine Manuf'ing Oct 1330 US Retail Sales MM Oct (Reporting by Brijesh Patel in Bengaluru; Editing by Rashmi Aich)