US CPI data due at 1330 GMT
Dollar down 0.1 against its rivals
Donald Trump to begin his second term next week

Jan 15 Reuters Gold prices firmed on Wednesday as the U.S. dollar and Treasury yields retreated, while markets participants awaited U.S. inflation data for clues on Federal Reserve39;s interest rate strategy.

Spot gold gained 0.2 to 2,683.62 per ounce by 0903 GMT. U.S. gold futures was up 0.7 to 2,701.80.

The dollar index eased 0.1, making bullion more attractive for other currency holders. The benchmark 10year Treasury yields also slipped.

The U.S. Consumer Price Index CPI data is due at 1330 GMT. A Reuters poll forecast a yearonyear rise of 2.9 versus 2.7 in November 2024 and a monthonmonth increase of 0.3.

The market is on hold, waiting for the CPI data to see its impact on rate cuts while the upcoming inauguration of President Trump adds to market uncertainty, which is providing gold some support, said Ole Hansen, head of commodity strategy at Saxo Bank.

If CPI data is unexpectedly low, it could convince the market that we are still on a path to rate cuts, with the market pricing just between nothing and one cut this year, he added.

Data on Tuesday showed U.S. producer prices rose moderately in December, but that is unlikely to change views that the U.S. central bank would not cut rates again before the second half of this year amid labour market resilience.

Meanwhile, Presidentelect Donald Trump is set to begin his second term next week,…