Gold hovers below record peak ahead of inflation data, Fed minutes

Gold prices edged down on Wednesday, hovering below a record high, as investors looked out for minutes from the U.S. Federal Reserve‘s policy meeting and crucial inflation data for cues on the timing and extent of interest rate cuts.

FUNDAMENTALS

* Spot gold was down 0.2% at $2,348.49 per ounce, as of 0107 GMT, after hitting a record high of $2,365.09 on Tuesday.

* U.S. gold futures edged 0.2% higher to $2,366.60 per ounce.

* The U.S. CPI data and the minutes of the Fed‘s March policy meeting are due later in the day, which could help gauge the timing of the widely-expected rate cuts.

* It’s possible the U.S. Federal Reserve may not cut interest rates at all this year if progress on inflation stalls and the economy continues to outperform, Atlanta Fed President Raphael Bostic said. * Bond strategists upgraded their U.S. Treasury yield forecasts for coming months as sticky inflation and resilient economic activity have pushed financial markets to temper expectations for Federal Reserve rate cuts this year, a Reuters poll showed. * Higher interest rates reduce the appeal of holding non-yielding gold.

* Bank of America (BofA) expects gold prices to average $2,500 an ounce by the fourth quarter of this year as demand from central banks and Chinese retail buyers has been firm.

* U.S. small-business confidence slipped to the lowest level in more than 11 years in March amid rising concerns about inflation, according to a survey.

* Euro zone banks lowered the bar on mortgage approvals last quarter for the first time in over two years, but demand for credit kept falling amid high borrowing costs and a stagnant economy, a European Central bank survey showed.

* The Nasdaq and S&P 500 posted modest gains, a day ahead of major inflation data, weighed down by financial stocks as investors braced for major U.S. banks to kick off earnings reporting season on Friday.

* Spot silver fell 0.5% at $28.01 per ounce, platinum edged down 0.3% to $975.85 and palladium lost 0.5% to $1,087.39.