Gold prices edge higher as US dollar, yields soften

* U.S. gold futures edged 0.1% higher to $2,397.60.

* The dollar fell 0.2% against a basket of other major currencies, making gold more attractive for other currency holders. Benchmark 10-year Treasury yields hit their lowest in a more than one month.

* rose 0.3% last month after advancing 0.4% in March and February, suggesting that inflation resumed its downward trend at the start of the second quarter in a boost to financial market expectations for a September interest rate cut.

* Federal Reserve policymakers waiting to see renewed progress on inflation before reducing borrowing costs got some encouraging data on Wednesday with a government report showing inflation eased a bit in April.

* Lower interest rates reduce the opportunity cost of holding non-yielding gold.

* President Austan Goolsbee said he was optimistic inflation would continue to come down.

* Escalation of the seems unavoidable whoever wins the White House in November, but the equally inevitable inflationary pressures that brings won't automatically steer the Federal Reserve toward a more hawkish policy stance.

* India's merchandise trade deficit in April was wider than expected, hurt by lower exports and a surge in gold imports, government data showed on Wednesday.

* It's 'green for go' in Asia as around the world roar to fresh highs, boosted by renewed optimism that the Federal Reserve will soon start cutting U.S. interest rates.

* 's options for its pursuit of rival miner include sweetening its $42.7 billion buyout offer, making a hostile bid or walking away for now as it approaches a May 22 deadline to lodge a binding offer.

* Spot silver was unchanged to $29.71 per ounce, platinum was up 0.5% at $1,069.45 and palladium gained 0.3% to $1012.84.