FUNDAMENTALS
* Spot gold was little changed at $1,813.04 per ounce by 0118 GMT, after falling to a one-week low of $1,805 an ounce on Tuesday. U.S. gold futures were steady at $1,813.30.
* Benchmark U.S. Treasury yields jumped to two-year highs on Tuesday, as traders prepared for the Fed to be more aggressive in tackling unabated inflation, ahead of its meeting on Jan. 25-26.
* Gold is considered an inflationary hedge, but the metal is highly sensitive to rising U.S. interest rates, which increase the opportunity cost of holding non-interest bearing bullion.
* The U.S. dollar index posted its best daily gain in four weeks on Tuesday, rising to a one-week high against a basket of currencies, making greenback-priced gold less attractive for overseas buyers.
* Euro zone inflation is set to burn hotter throughout 2022 than expected a month ago, according to economists polled by Reuters, which could pressure the European Central Bank to tighten policy once the Omicron wave of the pandemic passes.
* The Bank of Japan raised its inflation forecasts but said it was in no rush to change its ultra-loose monetary policy.
* Oil prices climbed to their highest since 2014 as investors worried about global political tensions exacerbating the already tight supply outlook.
* Spot silver was steady at $23.44 an ounce, platinum was down 0.3% to $978.49, and palladium was little changed at $1,896.83.
DATA/EVENTS (GMT) 0700 UK CPI YY Dec 0700 Germany HICP Final YY Dec 1330 US Housing Starts Number Dec
