Gold retreats after best day in a month

Gold prices retreated on Wednesday ahead of US inflation data that could provide further direction on US monetary policy after comments from the Federal Reserve Chair lifted bullion in the last session, reports Reuters.
Spot gold was down 0.3 per cent at $1,817.11 per ounce at 1147 GMT, after posting its biggest one-day percentage rise since mid-December on Tuesday. US gold futures were down 0.1 per cent at $1,817.20.
The dollar recovered slightly, weighing on gold, but "we will have more direction after the release of US Consumer Price Index data today," and if that meets expectations, gold will remain trapped in recent ranges, said Ricardo Evangelista, senior analyst at ActivTrades.
Further, "with the fizzling out of the fears of the impact of the Omicron variant, gold could lose some safe haven appeal," Evangelista added.
US inflation data is due at 1330 GMT, with core CPI, which excludes food and energy prices, seen rising by 5.4 per cent, its highest in decades and up from 4.9 per cent in the prior month. That could seal the case for an early rise in interest rates.
What's going to be interesting as far as the impact on policymaking goes, with the Fed's focus likely shifting to employment from inflation, is the number on employment costs, StoneX analyst Rhona O'Connell said.
The dollar steadied above almost two-month lows against its major peers.