Gold firms as dollar, yields slip; US inflation data looms

Gold prices firmed on Wednesday as the US dollar and Treasury yields retreated, while market participants awaited US inflation data for clues on the Federal Reserve's interest rate strategy, reports Reuters.
Spot gold gained 0.4 per cent to $2,687.59 per ounce by 1107 GMT. US gold futures were up more than 1 per cent at $2,710.00.
The dollar index eased 0.2 per cent, making bullion more attractive for other currency holders. The benchmark 10-year Treasury yields also slipped.
The US Consumer Price Index (CPI) data is due at 1330 GMT. A Reuters poll forecast month-on-month inflation held at 0.3 per cent in December, while the year-on-year figure climbed to 2.9 per cent from 2.7 per cent in November.
The market is on hold, waiting for the CPI data to see its impact on rate cuts, while the upcoming inauguration of Donald Trump as president adds to market uncertainty, which is providing gold some support, said Ole Hansen, head of commodity strategy at Saxo Bank.
If CPI data is unexpectedly low, it could "convince the market that we are still on a path to rate cuts", with the market pricing just between nothing and one cut this year, he said.
Spot silver firmed 0.6 per cent at $30.07 per ounce and platinum rose 0.5 per cent to $939.50. Palladium added 1.3 per cent at $950.89.