By Asha Sistla

(Reuters) – Gold prices held steady Tuesday, as investors waited for hot U.S. Inflation data. This would confirm bets that the Federal Reserve will take aggressive steps to reduce pricing pressures.

After hitting its high in almost a month, spot gold XAU= ticked 0.1% to $1,955.61 an ounce at 1153 GMT. U.S.GCv1 increased 0.4% to $1.956.60

Han Tan of Exinity, chief market analyst said, “A higher-than expected headline U.S. CPI level may push closer towards the psychologically significant $2,000 level”

Later in the day, data is expected to reveal that U.S. consumer price rose the highest in 16-1/2 year in March. This would make it clear for the Fed’s decision to increase interest rates by 50 basis points next month. (Full Story)

The slight pressuring of gold did not affect the dollar, which was supported by strong U.S. yields. USD/ US/

Gold is more costly for other currencies that have a stronger dollar, and higher U.S. rates and yields make it less attractive to hold zero-yield gold bullion.

Ross Norman, an independent analyst said that while the Fed can print dollars they cannot print economic growth or commodities.

The risk of making a serious policy mistake by not reacting faster (to inflation), looks greater, and this will lead to gold.

After hitting its highest level since March 24, at $2,361.37 an ounce, auto-catalyst palladium dropped 2.9% to $2.361.37, it hit $2,550.58 Monday after reaching its highest point since March 24th, when it was $2,550.58. This occurred following suspension of trading in Russia’s metal from the London hub. (Full Story)

Norman explained that palladium’s drop due to concerns about supply was “an anomaly”

Spot silver fell 0.5% to $24.96 an ounce, while platinum dropped 1.3% to $964.45