PRECIOUS-Gold slips as higher Treasury yields offset focus on Warsh's inflation message

Updates prices as of 0714 GMT

By Pablo Sinha

July 30 (Reuters) - Gold prices slipped on Thursday, pressured by higher U.S. Treasury yields, while markets assessed comments from Federal Reserve Chairman Kevin Warsh on tackling inflation after the central bank left its interest rates unchanged this week.

Spot gold XAU= was down 0.5% at $4,045.59 per ounce, as of 0714 GMT, after rising as much as 2% in the previous session. U.S. gold futures GCcv1 for August delivery gained 0.2% to $4,043.70.

Yields on the benchmark 10-year U.S. Treasury note US10YT=RR climbed, increasing the opportunity cost of holding bullion. US/

"Yields are a byproduct of the rate expectations, and if market expects that inflation fears will translate into higher rates, yields will be higher," and this is pressuring gold, ANZ analyst Soni Kumari said.

A divided Federal Reserve left interest rates unchanged on Wednesday while Warsh reaffirmed the central bank's commitment to bringing inflation under control, leaving markets uncertain about its next policy move.

While gold is seen as an inflation hedge, it loses its appeal as a non-yielding asset in a high-interest-rate environment.

Markets are still pricing in a 67% chance of a rate hike in September, although this is down from about 81% before the policy decision, according to CME Group's FedWatch tool. FEDWATCH

Investors are also awaiting June's U.S. Personal Consumption Expenditure (PCE) data, due at 1230 GMT.

On the geopolitical front, the U.S. carried out fresh strikes in Iran on Wednesday, the U.S. military said, further intensifying a five-month-old war that was already expanding beyond its main fronts to embroil additional countries in the region.

"The yellow metal is likely to drift back toward $3,900 per ounce as oil remains under pressure to move even higher through the summer," analysts at TD Securities said in a note.

Spot silver XAG= fell 0.3% to $57.49 per ounce and platinum XPD= fell 1% to $1,595.38. Palladium XPT= rose 0.7% to $1,255.67.

(Reporting by Pablo Sinha in Bengaluru; Editing by Harikrishnan Nair and Sherry Jacob-Phillips)

((Pablo.Sinha@thomsonreuters.com;))