<p>Gold prices flitted in a narrow range on Thursday as cautious investors held to the sidelines and awaited key US inflation report to gauge the size of the Federal Reserve's future interest rate hikes.</p>.<p>Spot gold was flat at $1,706.76 per ounce, as of 0220 GMT. US gold futures fell 0.2% to $1,709.80.</p>.<p>The dollar index inched 0.1% lower. A weaker dollar generally makes greenback-priced gold more attractive to other currency holders.</p>.<p>It looks like gold prices are consolidating ahead of the inflation data, said Brian Lan, managing director at Singapore-based dealer GoldSilver Central.</p>.<p>The US consumer price index (CPI) report for October is due at 1330 GMT. Economists expect core inflation to decline both on a monthly and annual basis.</p>.<p>Gold could rise if there are signs of cooling inflation, but if the numbers come higher, then there will be speculations of the Fed using a heavy hand again and thereby pressuring gold, Lan added.</p>.<p>Rising interest rates increase the opportunity cost of holding bullion, while lifting returns on other yielding assets.</p>.<p>Traders now pricing in a 48.5% chance of a 50-basis-point rate hike and 51.5% chance of a 75 bps hike at the Fed's December meeting.</p>.<p>Gold could consolidate around the $1,700 level, but if the strong dollar trade gains traction leading up to CPI, selling pressure could target the $1685 region, said Edward Moya, senior analyst with OANDA in a note.</p>.<p>Meanwhile, Richmond Fed President Thomas Barkin said on Wednesday the Fed's fight to lower inflation "may lead to a downturn" as the central bank's interest rate increases are "challenged" by still-high consumer savings, still-tight labor markets and ongoing supply problems.</p>.<p>Spot silver rose 0.3% to $21.06. Platinum climbed 0.1% to $986.07, while palladium was down 0.1% at $1,862.62.</p>
<p>Gold prices flitted in a narrow range on Thursday as cautious investors held to the sidelines and awaited key US inflation report to gauge the size of the Federal Reserve's future interest rate hikes.</p>.<p>Spot gold was flat at $1,706.76 per ounce, as of 0220 GMT. US gold futures fell 0.2% to $1,709.80.</p>.<p>The dollar index inched 0.1% lower. A weaker dollar generally makes greenback-priced gold more attractive to other currency holders.</p>.<p>It looks like gold prices are consolidating ahead of the inflation data, said Brian Lan, managing director at Singapore-based dealer GoldSilver Central.</p>.<p>The US consumer price index (CPI) report for October is due at 1330 GMT. Economists expect core inflation to decline both on a monthly and annual basis.</p>.<p>Gold could rise if there are signs of cooling inflation, but if the numbers come higher, then there will be speculations of the Fed using a heavy hand again and thereby pressuring gold, Lan added.</p>.<p>Rising interest rates increase the opportunity cost of holding bullion, while lifting returns on other yielding assets.</p>.<p>Traders now pricing in a 48.5% chance of a 50-basis-point rate hike and 51.5% chance of a 75 bps hike at the Fed's December meeting.</p>.<p>Gold could consolidate around the $1,700 level, but if the strong dollar trade gains traction leading up to CPI, selling pressure could target the $1685 region, said Edward Moya, senior analyst with OANDA in a note.</p>.<p>Meanwhile, Richmond Fed President Thomas Barkin said on Wednesday the Fed's fight to lower inflation "may lead to a downturn" as the central bank's interest rate increases are "challenged" by still-high consumer savings, still-tight labor markets and ongoing supply problems.</p>.<p>Spot silver rose 0.3% to $21.06. Platinum climbed 0.1% to $986.07, while palladium was down 0.1% at $1,862.62.</p>