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Gold prices bounced back on Wednesday from one-month lows as bond yields and dollar weakened a day ahead of the release of U.S. consumer price data that could build the case for or against further interest rates hikes.

FUNDAMENTALS

* Spot gold was up 0.1% at $1,926.29 per ounce by 0117 GMT, having dropped to the lowest level since July 10 at $1,922 on Tuesday. U.S. gold futures were flat at $1,960.30.

* The dollar index was off previous session's highs, while longer-dated U.S. Treasury yields fell on Tuesday after Moody's cut its credit ratings on several small- to mid-sized U.S. banks. [USD/] [US/]

* U.S. and European bank stocks dropped on Tuesday on renewed investor worries about the health of the industry after ratings agency Moody's downgraded several U.S. lenders and Italy approved a surprise 40% windfall tax on its lenders.

* The U.S. trade deficit narrowed sharply in June as businesses cut back on purchases of foreign-made capital goods, resulting in imports falling to the lowest level in more than 1-1/2 years.

* There is still time for Federal Reserve officials to study data before deciding if further rate increases are needed, Richmond Fed President Thomas Barkin said on Tuesday.

* While, Philadelphia Fed President Patrick Harker said U.S. central bank may be at the stage where it can leave interest rates where they are, barring any abrupt change in the direction of recent economic data.

* Investors are eyeing gains in emerging markets stocks and a cooling of their currencies amid an unprecedented global decoupling in the direction of interest rates.

* Barrick Gold Corp beat analysts' expectations for second-quarter profit on Tuesday, as the Canadian gold miner benefited from higher prices of the precious metal.

* Spot silver gained 0.2% to $22.79 an ounce and platinum eased 0.2% to $898.15. Palladium rose 0.4% to $1,225.39.