U.S. CPI report due on Thursday
Hawkish tone from Fed could prompt profittaking analyst

Jan 10 Reuters Gold prices were steady on Tuesday, with cautious traders largely focusing on Federal Reserve Chair Jerome Powell39;s speech for insights into the U.S. central bank39;s ratehike trajectory.

Spot gold held its ground at 1,872.79 per ounce, as of 0333 GMT. U.S. gold futures were flat at 1,877.70.

Investors39; focus is on Powell39;s speech at a central bank conference later in the day. Market participants will also scan the U.S. consumer price index CPI data due on Thursday for further clues on Fed39;s policy stance.

Gold prices are hitting a key resistance at the 1,875 level … A hawkish tone in Fed Chair Powell39;s speech later today could prompt some nearterm profittaking in gold, said IG Market strategist Yeap Jun Rong.

However, market is on the watch for a downside surprise in the U.S. CPI to support the lesshawkish ratehike expectations, which could translate to upside for gold prices.

Elevated interest rates dull gold39;s appeal as an inflation hedge and raise the opportunity cost of holding the nonyielding asset.

San Francisco Federal Reserve President Mary Daly on Monday said that either a 50 basis point or a 25 bps rate hike was a possibility in the upcoming Fed meeting, while Atlanta Fed President Raphael Bostic commented that it was appropriate to be 39;more cautious39; in calibrating rates, with rates possibly staying higher into 2024. FEDWATCH

The…