Gold steady as investors await US inflation data

LONDON, Apr 12 (Reuters): Gold prices held steady on Tuesday as investors braced for likely hot US inflation data that would consolidate bets of aggressive measures from the Federal Reserve to tame pricing pressures.

Spot gold ticked 0.1 per cent higher to $1,955.61 per ounce by 1153 GMT, after hitting its highest in nearly a month on Monday. US gold futures rose 0.4 per cent to $1,956.60.

"A higher-than-expected headline US CPI print may nudge spot gold closer to the psychologically important $2,000 level, considering bullion's time-honoured role as an inflation hedge," said Han Tan, chief market analyst at Exinity.

Data due later in the day is likely to show US consumer prices rose by the most in 16-1/2 years in March, which would seal the case for the Fed to raise interest rates by a hefty 50 basis points next month. A stronger dollar makes gold more expensive for holders of other currencies, while higher US interest rates and yields increase the opportunity cost of holding zero-yield bullion.