LONDON: Gold prices traded in a narrow range on Thursday after hitting a two-week high earlier in the session, as investors awaited US inflation data for pointers on the next moves in the US Federal Reserve’s monetary policy tightening plans.

Spot gold was steady at $1,832.09 per ounce by 0955 GMT, after reaching a two-week high of $1,835.67. US gold futures fell 0.2% to $1,832.20.

“Gold finally appears to be rediscovering its place as an inflation hedge and is now moving independently of US yields,” said Michael Hewson, chief market analyst at CMC Markets UK.

“If inflation expectations start to increase, that could push gold higher as it could prompt the Fed to tighten too quickly and potentially slow down the global economy,” he said.

The US consumer price index for January, expected at 1330 GMT, is expected to have risen 7.3% annually, which would be the largest such increase since 1982.

A robust inflation reading is expected to burnish gold’s appeal as an inflation hedge, but interest rate hikes would raise the opportunity cost of holding non-yielding bullion.

Craig Erlam, senior market analyst at OANDA, said gold was hitting resistance around $1,835.

“We just need to get this inflation report out of the way, after which gold may generate some fresh momentum, one way or another. It’s a little flat on the day so far and may remain so ahead of the CPI release later,” he said.

Spot silver rose 0.2% to $23.33 per ounce, platinum fell 0.9% to $1,024.67, while palladium gained 0.5% to $2,290.36.