U.S. CPI data due at 1330 GMT
Spot gold may fall into 2,0062,016 range technicals
Bears taking cautious approach ahead of U.S. data analyst

Jan 11 Reuters Gold eked out gains on Thursday as the U.S. dollar extended its retreat ahead of a U.S. inflation report later in the day that could offer more clarity on the Federal Reserve39;s monetary policy outlook this year.

Spot gold was up 0.4 at 2,031.30 per ounce, as of 0448 GMT. U.S. gold futures also rose 0.4 to 2,035.40.

The dollar index fell 0.1, on its second session of decline, making bullion more attractive for buyers holding other currencies.

U.S. CPI looming, gold bears may be taking a cautious approach and lightening their load ahead of the event, said Matt Simpson, a senior analyst at City Index.

All eyes are on U.S. consumer price inflation CPI report due at 1330 GMT, followed by producer prices data on Friday.

Economists polled by Reuters see yearonyear inflation at 3.2 in December, but think core inflation likely fell to 3.8, its lowest since mid2021. 

Traders are betting on 140 basis points bps of interest rate cuts by the U.S. central bank this year and a 69 chance they begin as soon as March, according to LSEG39;s interest rate probability app, IRPR.

While Fed cuts seem likely, 140 bps could still be overly optimistic in my view. Core CPI is still roughly twice the Fed39;s target and employment data remains strong, Simpson added.

Lower interest rates decrease the opportunity cost of holding…