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By 3 MINUTE READ* Consumer prices in the United States grew the most in 13 years in June* The dollar fell 0.2 percent against its peers* Markets await Powell’s testimony, which is scheduled for later on Wednesday (Recasts, adds comments and updates prices) 14 JULY (Reuters) – Gold prices gained on Wednesday, boosted by strong U.S. inflation data, but gains were limited ahead of Federal Reserve Chair Jerome Powell’s testimony, as early tapering bets grew. As of 0854 GMT, spot gold was up 0.3 percent at $1,812.80 per ounce. Gold futures in the United States rose 0.2 percent to $1,814.20. “The inflation hedge quality of gold has been improved by U.S. CPI data,” says Xiao Fu, head of commodity market strategy at Bank of China International. “However, gold is only modestly up because market players are waiting for the Fed chairman speech.” “On the one hand, gold is benefiting from inflation hedges, but mounting market expectations for a rate hike towards the end of 2022 are offsetting some of the price gains.” The greatest increase in consumer prices in the United States in 13 years has heightened investor focus on Fed rhetoric. After stronger-than-expected U.S. inflation statistics, futures on the federal funds rate increased bets on the Fed tightening monetary policy between December 2022 and early in the first quarter of 2023. Some investors see gold as a hedge against rising inflation, but a Fed rate hike would reduce the attraction of the non-yielding metal as the opportunity cost of owning it rises. Meanwhile, gold prices are being supported by a small decline in the dollar and benchmark 10-year Treasury yields in the United States. “Powell’s testimony is likely to take a hawkish tone. In such situation, the dollar will climb while gold falls “Anand Rathi Shares, a Mumbai-based broker, said Jigar Trivedi, a commodities analyst. “The cost of psychological assistance is currently $1,800, but this will soon be exceeded. For the next 15 days, I’m looking at $1,760 as a support level.” Silver jumped 0.3 percent to $26.05 per ounce, platinum rose 0.9 percent to $1,114.20, and palladium fell 0.1 percent to $2,824.03 per ounce. (Brijesh Patel in Bengaluru contributed reporting; Emelia Sithole-Matarise edited the piece.)/nRead More

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