PRECIOUS-Gold ticks higher with focus on U.S. inflation data, cenbank cues

* U.S. consumer inflation data awaited on Friday

* The ECB policy meeting is due on Thursday

* Spot gold may retest resistance at $1,867/oz – technicals

(Recasts, adds comment, updates prices)

By Eileen Soreng

June 6 (Reuters) – Gold prices gained on Monday, supported
by a slight pullback in the dollar, with investors watching out
for U.S. inflation data and major central bank policy meetings
to shed light on the path of interest rate hikes.

Spot gold rose 0.2% to $1,853.89 per ounce by 1033
GMT, having slipped off a near one-month high of $1,873.79 on
Friday.

U.S. gold futures were up 0.4% at $1,856.80.

The dollar index was down 0.2%, making bullion
cheaper for holders of other currencies.

“It seems that the market has paused a little bit waiting
for the next major driver,” said Craig Erlam, senior market
analyst at OANDA.

“The U.S. inflation data on Friday is going to be
critical… If we see another reading this month that the
inflation is falling more slowly than expected that could really
dampen sentiment once more.”

Safe-haven bullion is viewed as a hedge against inflation,
although higher interest rates raise the opportunity cost of
holding gold which yields no interest.

The U.S. consumer price index is forecast to have risen to
0.7% in May after rising 0.3% in April.

While the U.S. Federal Reserve is on track for half-a-point
interest rate hikes at June and July policy meetings, a high
inflation reading would add to expectations of aggressive
tightening even in the second half of the year.

The European Central Bank meets on Thursday, while the Fed
and Bank of England meetings are due next week.

Investors have ramped up their bets on ECB’s interest rate
hikes this year, and priced in a bigger, 50 basis-point hike by
October.

On the technical front, spot gold may retest a resistance at
$1,867 per ounce, a break above which could lead to a gain to
$1,879, according to Reuters technical analyst Wang Tao.

Elsewhere, silver climbed 1.8% to $22.31 per ounce,
palladium jumped 2.4% to $2,022.80 per ounce and platinum
rose 1.6% to $1,029.76.

(Reporting by Eileen Soreng in Bengaluru; Editing by Amy Caren
Daniel)
((eileen.soreng@thomsonreuters.com; Within U.S. +1 646 223
8780, Outside U.S. +91 80 6749 6131; Reuters Messaging:
eileen.soreng.thomsonreuters.com@reuters.net))

Keywords: GLOBAL PRECIOUS/ (UPDATE 4)

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