By Ashitha Shivaprasad
(Reuters) - Gold prices gained on Tuesday supported by a softer dollar, while market participants awaited U.S. inflation data for cues on the Federal Reserve's policy tightening path.
Spot gold was 0.4% higher at $1,794.76 per ounce by 10:52 a.m. ET (1452 GMT), while U.S. gold futures rose 0.4% to $1,811.40.
A weaker greenback makes gold less expensive for overseas buyers. The dollar index was down 0.3%.
Gold is currently benefiting from a softer dollar and the Russia-Ukraine situation, while the focus is on what happens with CPI on Wednesday, said Daniel Pavilonis, senior market strategist at RJO Futures.
The U.S. consumer price report for July is due at 8:30 a.m. ET (1230 GMT) on Wednesday. A New York Federal Reserve survey showed on Monday that U.S. consumers' expectations for where inflation will be in a year and three years dropped sharply in July.
Lately, gold has been facing pressure as various central banks have been hiking interest rates to tame surging inflation. The precious metal is considered a hedge against inflation and political uncertainties, but higher rates make non-yielding bullion less attractive.
"A softer inflation number tomorrow, particularly on the core side, could be the catalyst (for gold prices) for a breakout to the upside, while a stronger number could put $1,800 out of reach for the foreseeable future," OANDA analyst Craig Erlam said in a note.
Ahead of the inflation report, analysts polled by Reuters expect annual inflation to have eased to 8.7% from 9.1% in June.
Meanwhile, the Bank of England will probably have to raise interest rates further to tackle inflation pressures that are gaining a foothold in Britain's economy, BoE Deputy Governor Dave Ramsden said.
Spot silver fell 0.9% to $20.46 per ounce, while platinum was down 0.6% at $934.02.
Palladium rose more than 1% to $2,255.54.
(Reporting by Ashitha Shivaprasad in Bengaluru; Editing by Shailesh Kuber and Shounak Dasgupta)