For Arundhati Sarkar
Oct 13 (Reuters) – Gold prices rose on Wednesday, fueled by concerns about the economic impact of rising energy prices and a falling dollar, as investors braced for a key US inflation report.
* At 1055 GMT, spot gold was up 0.72% at $ 1,772.42 an ounce, while US gold futures were also up 0.7% at $ 1,770.60 an ounce.
* The yield on the 10-year US Treasury bonds fell after hitting its highest since June, while the dollar retreated, making the bullion more attractive to buyers abroad.
* The global economy is bearing inflationary pressures and “gold is trying to emerge with a little bullish streak, but there is not much in terms of forward momentum in the price trend,” said Ole Hansen, an analyst at Saxo Bank.
* “If the CPI data (from the United States) surprise to the upside and there is a bit more volatility in the stock market, that could be a supporting factor for gold. But expectations of reduced monetary stimulus from the Fed they make the gold stay in bounded planes, “he explained.
* US consumer price data will be released at 1230 GMT and minutes from the Federal Reserve’s September meeting will be released at 1800 GMT. Both reports will be released as the market becomes increasingly concerned about high inflation, fueled in large part by a global energy crisis.
* If inflation data, Fed minutes or other US economic reports fail to move gold prices significantly, the next catalyst will be the November meeting of the US central bank, one analyst said.
* Among other precious metals, silver was up 1.2% at $ 22.81 an ounce; platinum was little changed at $ 1,007.51 an ounce; and palladium was up 1.2% at $ 2,070.15 an ounce.
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