* U.S. CPI report due at 1230 GMT
* 'Persistent' ECB won't tighten too early - Lagarde
July 13 (Reuters) - Gold prices were trapped in a tight
range as investors awaited U.S. inflation data on Tuesday that
could provide more clarity on the Federal Reserve's timeline for
Spot gold was up 0.3% at $1,811.95 per ounce by 1208
GMT. U.S. gold futures were 0.2% higher at $1,809.80.
"If we get a slightly hotter inflation print today that
could exert upward pressure on the U.S. 10-year yields, which in
turn could exert downward pressure on gold," said CMC Markets
UK's chief market analyst Michael Hewson.
After the U.S. consumer price index due at 1230 GMT, markets
will focus on Fed Chairman Jerome Powell's response to the data,
when he testifies before Congress on Wednesday and Thursday.
Following a hawkish tilt from the U.S. central bank last
month, Powell said the Fed would not raise interest rates too
quickly based only on the fear of coming inflation.
A Fed rate increase would dull gold's appeal as that
increases the opportunity cost of holding the non-yielding
"The fact that the Fed and the ECB are likely to diverge
when it comes to monetary policy over the course of the next 6
to 12 months, there is a potential for the dollar to go higher
and that could constrain to a certain extent the upside in gold
prices," Hewson added.
The European Central Bank has pledged to be "persistent" and
will not repeat its past mistake of tightening policy too early,
its president Christine Lagarde said on Tuesday.
Elsewhere, palladium dropped 0.1% to $2,853.27 per
ounce and platinum fell 0.2% to $1,115.51.
StoneX analyst Rhona OConnell said that continued stress in
the global vehicle market, mainly due to a semi-conductor
shortage, could reduce some 200,000 ounces of platinum growth in
the auto sector this year, and up to 400,000 ounces in
Silver rose 0.1% to $26.19 per ounce.
(Reporting by Brijesh Patel in Bengaluru; editing by Jason
Neely, Louise Heavens and Jane Merriman)