US CPI data due on Wednesday
Fed39;s Bowman acknowledges progress on inflation

Aug 12 Reuters Gold prices edged higher on Monday as investors looked forward to a key inflation report that could shed more light on the U.S. central bank39;s next policy move.

Spot gold was up 0.2 at 2,435.33 per ounce, as of 0648 GMT. U.S. gold futures were flat at 2,474.20.

I don39;t think people will want to make big commitments ahead of the data, said Ilya Spivak, head of global macro, Tastylive.

The U.S. consumer price index CPI data, due on Wednesday, is expected to show that headline and core prices rose 0.2 monthonmonth.

Further inflation progress reflected in the upcoming CPI data could see gold eye for a retest of its alltime high once more, said IG market strategist Yeap Jun Rong.

Currently, the market sees a 54 chance of a 50basispoint rate cut at the Federal Reserve39;s September meeting, according to the CME FedWatch Tool.

Nonyielding bullion39;s appeal tends to shine in a low interest rate environment.

Fed Governor Michelle Bowman softened her usually hawkish tone ever so slightly on Saturday, noting some further welcome progress on inflation even as she said inflation remains uncomfortably above the central bank39;s 2 goal.

On the top side, resistance for gold seems to be around 2,4802,500, but gold will go higher ultimately, but there might be a lot of volatility in near term, Spivak added.

Elsewhere, Palestinian militant group Hamas on Sunday asked mediators…