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PRECIOUS-Gold subdued on Fed comments after U.S. inflation data

       * Initial jobless claims at 1230 GMT
    * Gold continues to consolidate in its new range - analyst
    * Fed officials hint at big rate hikes

 (Recasts, adds comments, and updates prices)
    By Arundhati Sarkar
    Aug 11 (Reuters) - Gold prices edged lower on Thursday from
last session's one-month peak, weighed down by hawkish policy
remarks by U.S. Federal Reserve officials even as data pointed
to signs of inflation peaking.
    Spot gold        fell 0.3% to $1,786.71 per ounce by 0852
GMT, after hitting its highest since July 5 at $1,807.79 on
    U.S. gold futures        slipped 0.6% to $1,802.30.
    "Gold has struggled to make significant headway despite the
correction in both the U.S. dollar index and the easing in the
10-year U.S. treasury bond yield," said independent analyst Ross
    "Weighing on investors minds is the notion that maybe we
have seen peak inflation following the softer-than-expected CPI,
coupled with hawkish remarks by two FOMC members, with gold
slipping back to technical support on the charts."
    The dollar index weakened       , making bullion appealing
for overseas investors.
    The July CPI report came in softer than expected, causing
markets to reposition on hopes that inflation was peaking.

    However, Fed policymakers noted that they would continue to
tighten monetary policy until price pressures were fully broken.

    Fed Chair Jerome Powell's argument that the United States is
not in a recession has been validated thus far by the non-farm
employment number that point to a continued tight labour market,
and market therefore is looking at a 75-basis-point interest
rate hike in September, StoneX analyst Rhona O'Connell said.
    While gold is considered an inflationary hedge, rising U.S.
interest rates increase the opportunity cost of holding
non-yielding bullion.
    But, there's a lot of data to come ahead of the next FOMC
meet, and gold continues to consolidate in its new range,
O'Connell added.
    Focus now turns to U.S. producer prices data, along with
jobless claims numbers later in the day.
    Elsewhere, spot silver        fell 0.8% to $20.41 per ounce,
while platinum        rose 1.4% to $955.17.
    Palladium        gained 0.7% to $2,254.38.

 (Reporting by Arundhati Sarkar in Bengaluru; Editing by
Shailesh Kuber)

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