US CPI data due at 1230 GMT
Gold remains well supported until 1,970 analyst
Platinum, palladium rise

May 10 Reuters Gold prices eased on Wednesday, after rising in the previous two sessions, as the dollar firmed and investors positioned for April U.S. inflation data, which could have a bearing on the Federal Reserve39;s interest rate policy.

Spot gold was down 0.3 at 2,029.09 per ounce by 1151 GMT, while U.S. gold futures lost 0.3 at 2,037.30.

The U.S. dollar ticked up 0.1, limiting appetite for gold, especially among overseas investors.

The U.S. consumer price index CPI data is due at 1230 GMT. Economists polled by Reuters expect a 5.5 yearonyear increase in core consumer prices for April.

But if inflation comes in at the expected levels, a significant impact on gold prices is not expected, said ActivTrades senior analyst Ricardo Evangelista, attributing gold39;s slight losses resulting from investors hedging up the dollar.

Fed Chair Jerome Powell has said it is now an open question whether further rate increases will be warranted in an economy still facing high inflation, but also showing signs of a slowdown.

While gold is considered a hedge against inflation, rising interest rates dull nonyielding bullion39;s appeal.

However, some analysts have said gold could attempt another run to record high levels, given persistent economic worries, including U.S. debt ceiling jitters.

Concerns about a potential U.S. debt ceiling default are keeping investors from…