PRECIOUS-Gold drifts higher amid bargain hunting ahead of US inflation data

(Updates prices) * US CPI due at 1330 GMT * Bullion hit a near 2-month low on Tuesday * US monetary policy still restrictive, two Fed officials say By Ashitha Shivaprasad 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 Reserve's path for monetary policy. Spot gold XAU= 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 GCv1 rose 0.2% at $2,612.30. "There is currently some bargain hunting as prices fell below the $2,600 mark," said Kelvin Wong, OANDA'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. President-elect) Donald Trump affecting the rate cut cycle." USD/ Traders see a 62% chance of a 25 basis points cut at the Fed's December meeting, versus 77.3% a week ago, according to the CME'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 investors' radar. The Fed's policy rate continues to act as a brake on the resilient labor market and on inflation that is still above the 2% target, two U.S. central bankers said on Tuesday. "Trump's plans to continue tax cuts beyond 2025 and to increase spending will likely deteriorate the U.S. fiscal situation and this could pave the way for macroeconomic policy adjustments that would support gold," ANZ said in a note. Spot silver XAG= rose 0.5% at $30.86, platinum XPT= added 0.4% to $951.10 and palladium XPD= gained 0.6% at $949.70. <^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^ Spot gold price in USD per oz https://reut.rs/3O7PJAu Silver, platinum and palladium https://tmsnrt.rs/4fMqD62 ^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^> (Reporting by Ashitha Shivaprasad in Bengaluru; Editing by Rashmi Aich, Savio D'Souza and Varun H K) (([email protected];))