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China39;s 2022 gold output increases about 13.1

Jan 19 Reuters Gold prices inched higher on Thursday as investors weighed the chances of the U.S. Federal Reserve slowing its pace of interest rate hikes.

Spot gold was up 0.3 at 1,908.54 per ounce, as of 0725 GMT. U.S. gold futures rose 0.2 to 1,909.90.

Few Fed officials signalled on Wednesday that they would push on with more interest rate hikes, while Philadelphia Fed President Patrick Harker and Dallas Fed President Lorie Logan said they supported a slower pace of tightening.

Traders are mostly pricing in a 25basis point rate hike at the Fed39;s Jan. 31Feb. 1 meeting. Last year, the U.S. central bank slowed its pace of hikes to 50 bps in December after four straight 75bp increases.FEDWATCH

Markets still see a 25bp hike in February and rate cuts from September, and gold is enjoying the perceived less hawkish Fed, said Matt Simpson, a senior market analyst at City Index.

Lower interest rates tend to boost bullion39;s appeal as they decrease the opportunity cost of holding the nonyielding asset.

If gold can hold above 1,895, then prices will hold within the 1,9001,920 range, whereas a break below 1,895 signals a retracement against its bullish trend, ahead of a break above 1,930, Simpson said.

Data on Wednesday showed U.S. producer prices fell more than expected in December, offering more evidence that inflation was receding, while retail sales fell by the most in…