PRECIOUS-Gold muted on dollar strength ahead of US inflation data

    July 13 (Reuters) - Gold prices hovered near a more than
nine-month low on Wednesday, with the dollar continuing to hurt
bullion demand, while investors awaited monthly U.S. inflation
data for cues on the road ahead for the Federal Reserve's
monetary policy. 
    * Spot gold  was little changed at $1,726.27 per ounce
at 0106 GMT, after dropping to its lowest level since
late-September at $1,722.30 earlier. U.S. gold futures 
dipped 0.2% to $1,721.80. 
    * The dollar <=USD> steadied at 20-year highs, continuing to
make greenback-priced gold less attractive for buyers holding
other currencies. [USD/] 
    * Benchmark U.S. 10-year Treasury yields rose, decreasing
the appeal of non-yielding gold. [US/]
    * Economists polled by Reuters expect the U.S. Labor
Department's June Consumer Price Index (CPI), due later in the
day, to have accelerated on both a monthly and annual basis, by
1.1% and 8.8%, respectively. [nL1N2YS0UM] 
    * Barring a major surprise, the CPI data could coalesce
investors' expectations for a 75-basis-point interest rate hike
by the Fed later this month, as the U.S. central bank seeks to
rein in inflation. 
    * Although gold is seen as an inflation hedge, higher rates
draw investors away from bullion, which bears no interest. 
    * SPDR Gold Trust , the world's largest gold-backed
exchange-traded fund, said its holdings fell 0.17% to 1,021.53
tonnes on Tuesday from 1,023.27 tonnes on Monday. [GOL/ETF]
    * Spot silver  firmed 0.3% to $18.94 per ounce,
platinum  rose 2% to $847.27, and palladium  gained
0.2% to $2,029.90. 
    0300  China    Exports, Imports YY         June
    0300  China    Trade Balance               June
    0600  UK       GDP Est 3M/3M               May
    0600  UK       GDP Estimate MM, YY         May
    0600  UK       Manufacturing Output MM     May
    0600  Germany  HICP Final YY               June
    0645  France   CPI (EU Norm) Final MM, YY  June
    1230  US       CPI MM, SA                  June
    1800  US       Federal Reserve issues the Beige Book

 (Reporting by Bharat Govind Gautam in Bengaluru; Editing by
Rashmi Aich)
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