FUNDAMENTALS
* Spot gold was up 0.1% at $1,856.47 per ounce, as of
0105 GMT. U.S. gold futures were little changed at
$1,865.80.
* The dollar index eased 0.1%, making
greenback-priced gold less expensive for buyers holding other
currencies.
* The consumer price index increased 0.5% last month, the
Labor Department said on Tuesday, in line with expectations. In
the 12 months through January, the CPI increased 6.4% which was
the smallest gain since October 2021 and followed a 6.5% rise in
December.
* Fed officials said the U.S. central bank would need to
keep gradually raising interest rates to beat inflation and
suggested sticky price pressures driven by a hot jobs market may
push borrowing costs higher than they once thought.
* Rising interest rates discourage investors from placing
money in non-yielding assets like gold.
* Money markets now expect the Fed's target rate to peak at
5.257% in July, from a current range of 4.50% to 4.75%.
* European Central Bank governing council member Gabriel
Makhlouf said the bank could increase interest rates above 3.5%
and likely will not cut them again this year, in an interview
with the Wall Street Journal.
* Spot silver edged up 0.1% to $21.86 per ounce and
platinum rose 0.3% to $933.05. Palladium rose 0.3%
to $1,501.08, after hitting its lowest since late-August 2019 in
the previous session.
DATA/EVENTS (GMT)
0700 UK Core CPI YY Jan
0700 UK CPI YY Jan
1000 EU Total Trade Balance SA Dec
1100 EU Reserve Assets Total Jan
1330 US Retail Sales MM Jan
1415 US Industrial Production MM Jan
(Reporting by Kavya Guduru in Bengaluru; Editing by Rashmi
Aich)
Feb 15 (Reuters) - Gold prices edged up on Wednesday as
the dollar eased, while U.S. inflation data released on Tuesday
raised expectations that the Federal Reserve will persist with
monetary policy tightening.
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