May 19 (Reuters) - Gold prices inched up on Wednesday,
hovering near a four-month high on a weaker dollar, while
investors awaited minutes from the U.S. Federal Reserve's last
policy meeting as inflation worries persist.
FUNDAMENTALS
* Spot gold was up 0.1% at $1,870 per ounce by 0044
GMT, after hitting its highest since Jan. 29 at $1,874.80 in the
previous session.
* U.S. gold futures rose 0.1% to $1,869.60 per ounce.
* The dollar index held close to a near three-month
low against its rivals, making gold less expensive for other
currency holders.
* Market participants are waiting for the release of minutes
from the U.S. Fed's April 27-28 policy meeting at 1800 GMT for
further clarity on economic recovery and policymakers' view on
inflation.
* Data on Tuesday showed U.S. homebuilding fell more than
expected in April, likely pulled down by soaring prices for
lumber and other materials.
* Concerns over rising inflation intensified as U.S.
consumer prices rose 4.2% in April from a year earlier, the
fastest increase in more than a decade.
* The U.S. central bank has pledged to keep interest rates
low until the economy reaches full employment and Fed officials
have repeatedly maintained they expect any rise in inflation to
be short-lived.
* World powers, including the United States, urged a truce
in the conflict as Israel bombarded Gaza with air strikes and
Palestinian militants resumed cross-border rocket fire on
Tuesday.
* Palladium gained 0.2% to $2,907.09 per ounce,
silver eased 0.2% to $28.15, while platinum edged
0.2% higher to $1,220.50.
DATA/EVENTS (GMT)
0600 UK CPI YY April
0900 EU HICP Final MM, YY April1
1800 US Federal Open Market Committee releases the
minutes from its April 27-28 policy meeting
(Reporting by Brijesh Patel in Bengaluru; Editing by Rashmi
Aich)
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