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Gold rose on Wednesday, holding near record highs set in the previous session, while silver set another all-time high, nearing the $90 mark, as softer-than-expected U.S. inflation readings cemented U.S. interest rate cut bets.
FUNDAMENTALS
* Spot gold rose 0.6% to $4,615.85 per ounce as of 0211 GMT. Bullion hit a record high of $4,634.33 on Tuesday.
* U.S. gold futures for February delivery rose 0.5% to $4,624.0.
* The U.S. core Consumer Price Index rose 0.2% month-on-month and 2.6% year-on-year in December, lifted by higher costs for rents and food, as some of the distortions related to the government shutdown that had artificially lowered inflation in November, but it fell short of analysts' expectations of a 0.3% and 2.7% increase, respectively.
* U.S. President Donald Trump also welcomed the inflation figures, reiterating his push for the U.S. Federal Reserve chair Jerome Powell to cut interest rates "meaningfully."
* Global central bank chiefs and top Wall Street bank CEOs lined up in support of Powell on Tuesday after news of the Trump administration's decision to investigate him drew condemnation from former Fed chiefs and a chorus of criticism from key members of the Republican Party.
* Analysts say worries of Fed independence and regarding trust in U.S. assets have added to safe-haven demand for the yellow metal.
* Investors and major brokerages such as Goldman Sachs and Morgan Stanley expect two 25-basis-point rate cuts each this year, with the earliest one coming in June.
* Non-yielding assets tend to do well in a low-interest-rate environment and during geopolitical or economic uncertainties.
* In geopolitics, Trump on Tuesday urged Iranians to keep protesting and remember the names of those abusing them, saying 'help is on its way', as Iran saw its biggest demonstrations in years.
* Spot silver gained 3.1% to $89.63 per ounce after hitting an all-time high of $89.99 earlier in the session.
* Spot platinum climbed 3.5% to $2,405.30 per ounce, a one-week high, after scaling a record peak of $2,478.50 on December 29.
* Palladium was up 1.8% at $1,873.0 per ounce.
DATA/EVENTS (GMT) 1330 US PPI Machine Manuf'ing Oct 1330 US Retail Sales MM Nov 1500 US Existing Home Sales Dec - China Exports, Imports, Trade Balance YY Dec (Reporting by Ishaan Arora; Editing by Rashmi Aich)





















