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U.S. CPI due at 1330 GMT
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Fed expected to raise rates by 50 bps on Wednesday
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Dollar index down 0.2%
Dec 13 (Reuters) - Gold rose on Tuesday as the dollar eased, although trading was confined to a narrow range as investors held back from making large bets ahead of U.S. inflation data and the Federal Reserve's rate-hike decision.
Spot gold was up 0.4% at $1,787.54 per ounce by 1232 GMT. U.S. gold futures gained 0.4% to $1,799.
The dollar index was down 0.2%, making greenback-priced bullion more appealing to buyers holding other currencies.
"Before we can see any new directional movement for gold and silver, we need some more clarity from central banks. For the time being, the aspect of 50 basis point rate increases from all the major banks is already priced in," Carlo Alberto De Casa, external analyst at Kinesis Money, said.
"I see good chances of a consolidation phase. I don't expect massive movements in the final part of the year," he added.
All eyes are on U.S. consumer price index data for November due at 1330 GMT.
The U.S. central bank is set to issue its policy statement at 2 p.m. EST (1900 GMT) on Wednesday, followed by a press conference from Fed Chair Jerome Powell at 1930 GMT.
Traders now see a 89% chance of a 50-basis-point rate hike.
The Bank of England and the European Central Bank will also meet this week, with each expected to deliver a 50 bps rate hike on Thursday.
"The Fed is expected to slow the pace of interest rate hikes, although officials have said they are likely to remain restrictive for some time. A weak inflation print could see that period become shorter than expected," ANZ said in a note.
Lower rates tend to be beneficial for bullion as it decreases the opportunity cost of holding the non-yielding asset.
Spot silver rose 0.4% to $23.39 per ounce, platinum gained 0.9% to $1,010.51 and palladium climbed 0.6% to $1,898.31. (Reporting by Brijesh Patel in Bengaluru Editing by Vinay Dwivedi, Kirsten Donovan)
