Gold eases as investors brace for US inflation data

Gold prices eased during early Asian hours on Tuesday as cautious market participants awaited U.S. inflation data that could influence the Federal Reserve's policy path.

FUNDAMENTALS

* Spot gold fell 0.1% at $2,020.22 per ounce, as of 0023 GMT. U.S. gold futures were down 0.3% at $2,027.10.

* The dollar index was up 0.1%, making bullion less affordable for overseas buyers.

* The U.S. consumer price index (CPI) data is due on Wednesday.

* While U.S. consumers said last month they expected slightly lower inflation in a year's time, the New York Federal Reserve's report also showed the bank stresses that kicked off in March weren't weighing heavily on the moods of Americans.

* Investors are pricing in a 92% chance of the Fed holding rates at their current level in June.

* Treasury Secretary Janet Yellen said on Monday that a failure by Congress to raise the $31.4 trillion federal debt limit would cause a huge hit to the U.S. economy and weaken the dollar as the world's reserve currency.

* Spot silver slipped 0.2% at $25.52 per ounce, platinum rose 0.2% to $1,072.51, while palladium was flat at $1,553.50.

DATA/EVENTS (GMT, April) 0300 China Exports, Imports YY 0300 China Trade Balance 0600 UK Halifax House Prices MM, YY 0645 France Reserve Assets Total