Gold climbs as traders brace for US inflation data
Fed will cut rates when ready, says Powell
US CPI report due at 1230 GMT
Uganda central bank starts buying locally-produced gold
Updates prices
By Ashitha Shivaprasad
July 11 (Reuters) -Gold prices firmed for a third consecutive session on Thursday, with investors awaiting U.S. inflation data due later in the day for more insights on the Federal Reserve's interest rate path.
Spot gold XAU= gained 0.4% to $2,381.13 per ounce by 0704 GMT. U.S. gold futures GCcv1 rose 0.3% to $2,386.20.
The dollar was on the back foot, making greenback-priced bullion more attractive for other currency holders. USD/
The June Consumer Price Index (CPI) report is due at 1230 GMT and the Producer Price Index (PPI) reading on Friday.
Any downside surprise in the CPI report could weaken the dollar and push up gold prices to the $2,400 level, said Marex analyst Edward Meir.
U.S. inflation should continue to fall without a significant further rise in the unemployment rate, Fed Governor Lisa Cook said on Wednesday.
"I think gold is in a new paradigm, in a higher trading range and we're not going to see the old lows anymore. Another record high is possible this year if we get a geopolitical shock," Meir said.
Gold is considered a hedge against geopolitical turmoil and the non-yielding metal's appeal tends to shine when interest rates are low.
Fed Chair Jerome Powell said on Wednesday that the U.S. central bank would make interest rate decisions "when and as" they were needed. On Tuesday, he told House members that "more good data" would build the case for a rate cut.
Traders are currently pricing in a 46% probability that the Fed will have cut rates by two notches by the end of December's meeting and a 73% probability for the first cut in September, according to CME Group's FedWatch tool.
Uganda's central bank has begun buying locally-produced gold to bolster its depleted foreign reserves and tackle emerging challenges in international financial markets.
Spot silver XAG= climbed 0.6% to $30.99 per ounce, platinum XPT= was flat at $989.55 and palladium XPD= steadied at $986.33.
Spot gold price in USD per oz https://reut.rs/4bC3qkj
Reporting by Ashitha Shivaprasad in Bengaluru; Editing by Subhranshu Sahu and Mrigank Dhaniwala
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