By Pablo Sinha and Swati Verma

Aug 14 (Reuters) - Gold prices slipped on Friday and were headed for a weekly loss as investors locked in profits ‌a day after bullion was propelled to its highest level in more than ‌two months on mild U.S. inflation data that weakened the case for a near-term Federal Reserve rate hike.

Spot ​gold was down 0.5% at $4,330.70 per ounce, as of 0714 GMT. U.S. gold futures for December delivery slid 0.7% to $4,387.40.

Bullion climbed to its highest point since June 5 on Thursday, before settling lower, setting it on track for a weekly loss.

"There is some episodic and more speculative capital ‌that's maybe taking a bit ⁠of profit in gold, because there's not a near-term catalyst quite so potent immediately in front of us," said Ilya Spivak, head of ⁠global macro at finance content network Tastylive.

"Gold may be setting up, with some choppy trading along the way, for a meaningful rally now. And if we can take out $4,400, I don't think $5,000 ​by year-end ​is any kind of a sketch."

The non-yielding metal ​got a boost after an unexpected ‌drop in U.S. July nonfarm payrolls last week, followed by softer inflation data this week, sharply reducing expectations of a rate hike next month.

U.S. producer prices were unchanged in July, following a revised 0.1% drop in June, while U.S. consumer prices barely increased in July as the cost of gasoline declined for a second consecutive month.

Traders are now pricing ‌only a 33% chance of a rate hike in ​September, down from about 55% last week, according to ​the CME FedWatch Tool. [FEDWATCH]

Lower interest rates ​make gold more attractive relative to yield-bearing assets.

On the geopolitical front, ‌Washington on Thursday threatened to maintain a ​naval blockade of Iran ​indefinitely, ratcheting up economic pressure on Tehran as ceasefire talks have floundered.

In other metals, spot silver slipped 0.3% to $64.25 per ounce.

Platinum was steady at $1,717.40, while palladium inched ​0.3% lower at $1,303.50, both touching ‌their lowest levels since August 4 earlier in the session. Both metals were ​headed for a weekly drop.

(Reporting by Pablo Sinha and Swati Verma in ​Bengaluru; Editing by Sherry Jacob-Phillips and Ronojoy Mazumdar)