Gold prices advance for third consecutive session
Markets pricing in Fed 25bp rate hike in May
Gold might retest resistance at 2,032oz technicals

April 13 Reuters Gold prices rose for a third consecutive session on Thursday, as softerthanexpected U.S. inflation data prompted bets that the Federal Reserve might raise rates just once more before pausing.

Spot gold was up 0.3 at 2,020.52 per ounce, as of 0700 GMT. U.S. gold futures rose 0.5 to 2,035.20.

Gold prices rose over 1 on Wednesday after data showed the U.S. Consumer Price Index CPI rose 0.1 last month, compared with expectations of a 0.2 increase, after advancing 0.4 in February.

Expectations that the Fed39;s hiking cycle may be nearing its end are wellanchored by the recent U.S. CPI data, with lower Treasury yields and a weaker dollar being supportive of gold prices, said Yeap Jun Rong, a market analyst at IG.

The CME FedWatch tool shows markets are pricing in a 66.2 chance of a 25 basis point hike in May, with rate cuts seen in the second half of the year.

Rising interest rates reduce the appeal of nonyielding bullion.

Gold might retest a resistance at 2,032, Reuters technical analyst Wang Tao said.

San Francisco Fed Bank President Mary Daly on Wednesday said while the Fed 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 target because the latest data on price…