FUNDAMENTALS
* Spot gold rose 0.2% to $2,032.48 per ounce, as of 0030 GMT. U.S. gold futures were up 0.1% at $2,039.00.
* The dollar index slipped 0.1%, making greenback-priced bullion more affordable for overseas buyers.
* The annual increase in U.S. consumer prices slowed to below 5% in April for the first time in two years, potentially providing cover for the central bank to pause further interest rate hikes next month.
* Bullion prices initially rose on Wednesday after U.S. inflation data was released, before turning negative on profit taking.
* Markets are currently pricing in a 99% chance of the U.S. central bank holding rates at their current level in June.
* Lower interest rates boost non-yielding bullion's appeal
* U.S. President Joe Biden piled pressure on Republican lawmakers on Wednesday to move quickly to raise the country's $31.4 trillion debt ceiling or risk throwing the world's largest economy into a recession.
* The Bank of England is poised to raise borrowing costs for the 12th meeting in a row later in the day.
* Spot silver fell 0.1% at $25.39 per ounce, platinum edged 0.1% lower to $1,113.38, and palladium lost 0.3% at $1,602.55.
DATA/EVENTS (GMT)
0130 China PPI, CPI YY April
1100 UK BOE Bank Rate May
1230 US Initial Jobless Clm Weekly
1230 US PPI Machine Manuf'ing April
G7 Finance Ministers and Central Bank Governors' Meeting in Niigata
(Reporting by Ashitha Shivaprasad in Bengaluru; Editing by Rashmi Aich)
