US CPI due at 1330 GMT
Bullion hit a near 2month low on Tuesday
US monetary policy still restrictive, two Fed officials say

Nov 13 Reuters Gold prices edged up on Wednesday as investors sought bargains after steep declines in the previous session, while the spotlight shifted to U.S. inflation data, which could shed more light on the Federal Reserve39;s path for monetary policy.

Spot gold firmed 0.4 to 2,606.42 per ounce by 0733 GMT, after hitting its lowest since Sept. 20 on Tuesday. U.S. gold futures rose 0.2 at 2,612.30.

There is currently some bargain hunting as prices fell below the 2,600 mark, said Kelvin Wong, OANDA39;s senior market analyst for Asia Pacific.

Recent sessions saw gold negatively impacted due to a stronger dollar, driven by expectations of inflationary policies by U.S. Presidentelect Donald Trump affecting the rate cut cycle.

Traders see a 62 chance of a 25 basis points cut at the Fed39;s December meeting, versus 77.3 a week ago, according to the CME39;s FedWatch Tool.

Gold is a hedge against inflation, but higher rates dampen its appeal as it yields no interest.

U.S. Consumer Price Index CPI data is due at 1330 GMT, and if it shows the inflation trend is contained, gold could test 2,650, Wong said.

Besides that, U.S. Producer Price index PPI and weekly jobless claims are due on Thursday, and retail sales data is expected on Friday. Remarks from Fed Chair Jerome Powell and other U.S. central bank officials are also on investors39; radar….