<p>Gold prices inched higher for a third consecutive session on Thursday, as cooler-than-expected US inflation data spurred bets that the Federal Reserve might raise rates once more next month before pausing hikes.</p>.<p>Spot gold was up 0.1 per cent at $2,016.99 per ounce, as of 0332 GMT. US gold futures rose 0.3 per cent to $2,030.70.</p>.<p>Gold prices rose more than 1 per cent on Wednesday after data showed the US Consumer Price Index (CPI) rose 0.1 per cent last month, compared with expectations for a 0.2 per cent increase, after advancing 0.4 per cent in February.</p>.<p>"Expectations that the Fed's hiking cycle may be nearing its end are well-anchored by the recent US CPI data, with lower Treasury yields and a weaker dollar being supportive of gold prices," said Yeap Jun Rong, a market analyst at IG.</p>.<p><strong>Also Read | <a href="https://www.deccanherald.com/business/business-news/markets-fall-in-early-trade-after-8-days-of-rally-1209135.html" target="_blank">Markets fall in early trade after 8 days of rally</a></strong></p>.<p>The CME FedWatch tool shows markets are pricing in a 68.7 per cent chance of a 25 basis-point hike in May, with rate cuts seen in the back half of the year.</p>.<p>Gold is considered an inflation hedge, but rising interest rates reduce the appeal of non-yielding bullion.</p>.<p>San Francisco Fed Bank President Mary Daly said on Wednesday while the US central bank had "more work to do" on rate hikes, tighter credit conditions could argue for a pause. Richmond Fed President Thomas Barkin said the Fed had more work to do in bringing inflation down to its 2 per cent target because the latest data on price pressures was not sufficiently weak.</p>.<p>Minutes from the Fed's March meeting also showed several policymakers considered pausing rate increases after a forecast that banking sector stress would tip the economy into recession, but concluded that high inflation remained the priority.</p>.<p>Recession concerns are "allowing gold prices to ride on its safe-haven status... while technical conditions are revealing some moderation in upward momentum on recent highs," IG's Yeap added.</p>.<p>Spot silver was up 0.1 per cent at $25.50 per ounce, platinum was flat at $1,015.06 and palladium rose 0.3 per cent to $1,464.16.</p>
<p>Gold prices inched higher for a third consecutive session on Thursday, as cooler-than-expected US inflation data spurred bets that the Federal Reserve might raise rates once more next month before pausing hikes.</p>.<p>Spot gold was up 0.1 per cent at $2,016.99 per ounce, as of 0332 GMT. US gold futures rose 0.3 per cent to $2,030.70.</p>.<p>Gold prices rose more than 1 per cent on Wednesday after data showed the US Consumer Price Index (CPI) rose 0.1 per cent last month, compared with expectations for a 0.2 per cent increase, after advancing 0.4 per cent in February.</p>.<p>"Expectations that the Fed's hiking cycle may be nearing its end are well-anchored by the recent US CPI data, with lower Treasury yields and a weaker dollar being supportive of gold prices," said Yeap Jun Rong, a market analyst at IG.</p>.<p><strong>Also Read | <a href="https://www.deccanherald.com/business/business-news/markets-fall-in-early-trade-after-8-days-of-rally-1209135.html" target="_blank">Markets fall in early trade after 8 days of rally</a></strong></p>.<p>The CME FedWatch tool shows markets are pricing in a 68.7 per cent chance of a 25 basis-point hike in May, with rate cuts seen in the back half of the year.</p>.<p>Gold is considered an inflation hedge, but rising interest rates reduce the appeal of non-yielding bullion.</p>.<p>San Francisco Fed Bank President Mary Daly said on Wednesday while the US central bank had "more work to do" on rate hikes, tighter credit conditions could argue for a pause. Richmond Fed President Thomas Barkin said the Fed had more work to do in bringing inflation down to its 2 per cent target because the latest data on price pressures was not sufficiently weak.</p>.<p>Minutes from the Fed's March meeting also showed several policymakers considered pausing rate increases after a forecast that banking sector stress would tip the economy into recession, but concluded that high inflation remained the priority.</p>.<p>Recession concerns are "allowing gold prices to ride on its safe-haven status... while technical conditions are revealing some moderation in upward momentum on recent highs," IG's Yeap added.</p>.<p>Spot silver was up 0.1 per cent at $25.50 per ounce, platinum was flat at $1,015.06 and palladium rose 0.3 per cent to $1,464.16.</p>