Gold prices ease as US inflation data, Fed verdict in focus; Spot gold hits $1,793.44 per ounce

Gold prices inched lower on Monday, dragged down by a firmer dollar, with investors awaiting key US inflation data and Federal Reserve's rate-hike verdict due this week.

FUNDAMENTALS

* Spot gold slipped 0.2% to $1,793.44 per ounce, as of 0009 GMT. US gold futures GCv1 were down 0.3% at $1,805.90.

* The dollar index rose 0.2%, making dollar-priced bullion more expensive for overseas buyers. 

* Investors will keep a close eye on Tuesday's US Consumer Price Index (CPI) data and Fed's final meeting of 2022 scheduled on Dec. 13-14.

* Traders expect a 93% chance of a 50-basis-point rate hike by the Fed.

* Higher interest rates tend to increase the opportunity cost of holding gold as it yields no interest.

* US producer prices rose slightly more than expected in November amid a jump in the costs of services, but the trend is moderating, with annual inflation at the factory gate posting its smallest increase in 1-1/2 years.

* Gold premiums in China rose last week as demand picked up after the top consumer eased COVID-19 restrictions, while high prices muted activity in India.

* Spot silver lost 0.7% to $23.29, platinum fell 0.7% to $1,014.95 and palladium ticked 0.2% lower to $1,946.62.