Fed39;s Bostic 39;Little more data39; needed to support cutting rates
U.S. CPI data due at 1230 GMT
US producer prices rise less than expected in July

Aug 14 Reuters Gold prices edged lower on Wednesday as investors remained on the sidelines ahead of a key U.S. inflation report later in the day that could set the tone for the Federal Reserve39;s September policy meeting.

Spot gold eased 0.2 to 2,460.89 per ounce by 0537 GMT. Prices had hit a record high of 2,483.60 last month.

U.S. gold futures edged 0.3 lower to 2,500.10.

U.S. consumer price index data for July is due at 1230 GMT and expected to show monthonmonth inflation accelerated to 0.2, with the annual core slowing a tick to 3.2. Retail sales data is scheduled for Thursday.

Gold might drop to 2,300 if the CPI data doesn39;t align with expected rate cuts, but in the long term, bullion is likely to rise as the U.S. economy weakens enough for the Fed to cut rates significantly, said Kyle Rodda, a financial market analyst at Capital.com.

Data on Tuesday showed that U.S. producer prices increased less than expected in July, reinforcing market view that cooling inflation will allow the Fed to cut rates soon.

Traders see a 54 chance of a 50basispoint rate cut in September, according to the CME FedWatch Tool.

Atlanta Fed President Raphael Bostic said he wants to see a little more data before he39;s ready to support lowering rates.

Gold, often used as a hedge against geopolitical risks, thrives when interest…