* U.S. Fed minutes due at 1800 GMT
* Gold hits highest since late-Jan in previous session
* Silver eases off over three-month peak
(Recasts, adds comments, updates prices)
By Brijesh Patel
May 19 (Reuters) - Gold prices held steady near a four-month
high on Wednesday, helped by a weaker dollar, ahead of minutes
from the U.S. Federal Reserve's last policy meeting that are
expected to shed more light on policymakers' view on inflation.
Spot gold was flat at $1,866.54 per ounce by 0303
GMT, after hitting its highest since Jan. 29 at $1,874.80 in the
previous session.
U.S. gold futures were steady at $1,868.
"Gold surged aggressively since the start of the week around
the narrative that we could see inflation pick-up in an
environment where the Fed is resistant to tightening," DailyFX
currency strategist Ilya Spivak said.
"Against that backdrop, we've seen stronger commodity prices
in general and a weaker dollar. Certainly the price of gold has
been a notable reflection of that."
The dollar index held close to a near three-month low
against its rivals, making gold less expensive for other
currency holders.
Gold prices have risen about $190 or more than 11% after
falling to a nine-month trough in early March, with gains driven
by a pullback in the U.S. currency and inflation expectations as
bullion is seen as a hedge against inflation.
Concerns over rising inflation intensified after U.S.
consumer prices in April rose 4.2% on-year, the fastest increase
in more than a decade.
Market participants are awaiting the release of minutes from
the U.S. Fed's April 27-28 policy meeting at 1800 GMT.
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.
Silver fell 1% to $27.93 per ounce, moving further
away from a more than three-month high hit on Tuesday.
Palladium gained 0.1% to $2,905.78, while platinum
eased 0.3% to $1,215.
(Reporting by Brijesh Patel in Bengaluru, Editing by Sherry
Jacob-Phillips)
Read More
