* Gold set for first weekly drop since mid-Feb

* Hotter-than-expected U.S. inflation pressures Fed rate-cut hopes

* Traders reduce bets for June rate cut, number of cuts for 2024

March 15 (Reuters) - Gold prices were on track on Friday to snap a three-week winning streak as surprisingly hot U.S. inflation readings prompted traders to re-think on how swiftly and deeply the Federal Reserve could cut interest rates this year.

Spot gold was up 0.1% at $2,163.92 per ounce, as of 0338 GMT, but on track to post a weekly fall of more than 0.6%, its first since mid-February.

U.S. gold futures were steady at $2,168.00.

"It's hard to ignore the upside surprise from inflation now ... I don't see any fresh catalysts to propel gold above a major resistance of $2,200 in the short term," said Hugo Pascal, a precious metals trader at InProved.

U.S. producer prices increased more than expected in February. A reading on consumer inflation earlier this week also showed some stickiness in inflation.

Higher inflation adds pressure on the U.S. Fed to keep interest rates elevated, weighing on non-yielding assets such as gold, and increasing appeal for bonds, raising the dollar.

10-year Treasury yields rose nearly 20 bps to 4.2824% this week so far, and the dollar index gained more than 0.7% this week so far, on pace for its largest weekly gain since mid-January.

A firmer U.S. dollar makes gold more expensive for other currency holders.

Other data showed U.S. retail sales rebounded last month, but were below analyst estimates, while fewer people sought unemployment claims.

Traders have pared back the chances of a rate cut at the U.S. Fed's June meeting to 61%, from about 75% last Friday, according to LSEG's rate probability app. For 2024, market sees about three rate cuts, down from between three to four last Friday.

Spot platinum fell 0.4% to $927.35 per ounce, palladium dropped 0.2% to $1,066.86, while silver was up 0.6% at $24.97. All three metals were poised to clock a weekly gain.

(Reporting by Harshit Verma in Bengaluru; Editing by Sherry Jacob-Phillips)