WASHINGTON (dpa-AFX) - Gold prices edged higher on Wednesday after a week of losses, pressured by elevated Treasury yields and a stronger dollar.
Spot gold rose 0.4 percent to $2,608.02 per ounce in European trade after hitting nearly a two-month low on Tuesday. U.S. gold futures were up 0.4 percent at $2,616.70.
The dollar slipped slightly, retreating from a six-month high, ahead of the highly anticipated Labour Department's report on consumer price inflation for October, due later in the day.
Trading activity in bond markets point to a stronger CPI number, which could dampen hopes for another interest-rate cut at the U.S. central bank's December meeting.
The CPI report along with reports on U.S. producer price inflation, retail sales and industrial production due later in the week may provide further insights into the state of the economy and potential interest-rate cuts.
Fed Minneapolis President Neel Kashkari on Tuesday said he'll be watching the inflation data closely to determine how far the Fed should go in cutting the benchmark for short-term borrowing costs.
Richmond Fed President Thomas Barkin called the current level of rates 'somewhat less restrictive' than it had been, and said the Fed is currently in a position to respond appropriately regardless of how the economy evolves.
Traders are currently pricing in about two Fed rate cuts through June, against almost four seen at the start of last week.
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