Gold prices edge lower as traders eye US data for Fed clues

* U.S. gold futures were steady at $2,361.10.

* Markets' focus will be on the U.S. Consumer Price Index (CPI) data due at 1230 GMT.

* U.S. producer prices increased more than expected in April amid strong gains in the costs of services and goods, indicating that inflation remained elevated early in the second quarter.

* Meanwhile, Fed Chair said he expects U.S. inflation to continue declining through 2024 as it did last year and noted it was unlikely the Fed would have to raise again.

* Federal Reserve Bank of Cleveland President Loretta Mester said that it was appropriate for the Fed to hold rates steady as it awaits evidence that are easing further.

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

* The Australian-listed shares of rose 2.3% on Wednesday after its takeover target announced a break-up plan to defend itself against a $43 billion offer.

* Asian markets should open in upbeat mood as lower U.S. bond yields and a weaker dollar reflect expectations that the Fed will cut interest rates as early as September, but the apparent serenity could be shattered in a flash.

* Spot silver fell 0.2% to $28.52 per ounce, platinum was up 1.6% at $1,047.73 and palladium gained 0.9 to $986.15.