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. FUNDAMENTALS * 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. DATA/EVENTS (GMT) 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) (([email protected];)) Keywords: GLOBAL PRECIOUS/
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