Gold pulls back

Gold prices eased on Wednesday, after rising in the previous two sessions, as investors positioned for April US inflation data, which could have a bearing on the Federal Reserve's interest rate policy.

Spot gold was down 0.3 per cent to $2,028.87 per ounce at 1000 GMT, while US gold futures shed 0.3 per cent to $2,036.70.

The US consumer price index (CPI) data is due at 1230 GMT. Economists polled by Reuters expect a 5.5 per cent year-on-year increase in core consumer prices for April.

"Today's losses in gold prices arise mainly from the hedging up of the US dollar which kicked in as the European session got underway," said ActivTrades senior analyst Ricardo Evangelista, adding that, if inflation came in at the expected levels, a significant impact on gold prices was not expected.