Gold lower

Bengaluru

Gold edged lower on Wednesday, moving away from a one-month peak hit in the previous session as U.S. economic data boosted the case for an interest rate hike by the Federal Reserve next month.

Spot gold was down 0.2 percent to $1,260.60 per ounce at 0101 GMT. It touched a one-month high of $1,270.47 before pulling back 0.3 percent on Tuesday.

U.S. gold futures dipped 0.2 percent to $1,260.

U.S. consumer spending recorded its biggest increase in four months in April and monthly inflation rebounded, pointing to firming domestic demand that could allow the Federal Reserve to raise interest rates next month.

A U.S. rate hike is probably coming soon though the Federal Reserve may want to delay if inflation remains soft, influential Fed governor Lael Brainard said on Tuesday, adding she also backs shrinking the bond portfolio "before too long."