Feb 16 (Reuters) - Gold prices ticked lower on Thursday,
as the dollar firmed after recent economic data boosted bets
that the U.S. Federal Reserve would raise interest rates further
to combat high inflation.
FUNDAMENTALS
* Spot gold was down 0.1% at $1,835.26 per ounce, as
of 0048 GMT, after hitting its lowest level since early January
in the previous session. U.S. gold futures were little
changed at $1,845.90.
* The dollar index was up 0.1% after hitting a
six-week peak on Wednesday, making greenback-priced gold more
expensive for buyers holding other currencies.
* U.S. retail sales rebounded by 3% in January after two
straight monthly declines, data showed on Wednesday, pointing to
the economy's continued resilience despite higher borrowing
costs.
* On Tuesday, data showed the U.S. consumer price index
increased 0.5% last month, while in the 12 months through
January, the CPI increased 6.4%.
* Interest rate futures markets are now expecting the Fed's
target rate to peak above 5.2% in July, from a current range of
4.50% to 4.75%.
* Higher interest rates discourage investment in gold, which
does not bear any interest, although the metal is considered a
hedge against soaring prices.
* The yield on 10-year Treasury notes rose to
its highest since Jan. 3.
* Euro-zone inflation remains far too high and the European
Central Bank will keep raising interest rates to dampen
underlying price pressures, ECB President Christine Lagarde said
on Wednesday, repeating the bank's most recent policy guidance.
* Spot silver eased 0.1% to $21.61 per ounce,
platinum was little changed at $915.16 and palladium was unchanged at $1,464.36.
DATA/EVENTS (GMT)
0030 Australia Employment, Unemployment Rate Jan
1330 US Housing Starts Number Jan
1330 US Initial Jobless Clm Weekly
1330 US Philly Fed Business Indx Feb
1330 US PPI Machine Manuf'ing Jan
(Reporting by Kavya Guduru in Bengaluru; Editing by Subhranshu
Sahu)
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