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 Gold edged higher on Thursday supported by a dip in the dollar, but moved in a relatively narrow range on caution ahead of U.S. inflation data that could influence the Federal Reserve's future interest rate hikes.

Spot gold was up 0.3% at $1,710.62 per ounce, as of 0521 GMT. U.S. gold futures were flat at $1,713.70.

The dollar index inched 0.3% lower. A weaker dollar makes greenback-priced gold more attractive to other currency holders.

Gold prices are marginally up as the dollar is slightly weakening; it looks like prices are consolidating ahead of the inflation data, said Brian Lan, managing director at Singapore-based dealer GoldSilver Central.

The U.S. consumer price index (CPI) report for October is due at 1330 GMT. Economists expect core inflation to decline both on a monthly and annual basis.

Gold could rise if there are signs of cooling inflation, but if the numbers come higher, then there will be speculations of the Fed using a heavy hand again and thereby pressuring gold, Lan added.

Rising interest rates increase the opportunity cost of holding non-yielding bullion.

Gold could consolidate around the $1,700 level, but if the strong dollar trade gains traction leading up to CPI, selling pressure could target the $1685 region, said Edward Moya, senior analyst with OANDA, in a note.

Minneapolis Fed President Neel Kashkari on Wednesday said it's "entirely premature" to discuss any pivot away from the Fed's current policy tightening, even as he appeared to endorse the possibility of adjusting the size of future rate hikes.

GRAPHIC: xau (https://fingfx.thomsonreuters.com/gfx/ce/jnpwygmlkpw/Pasted%20image%201668050051781.png)

Silver rose 0.7% to $21.16. Platinum climbed 0.6% to $991.54, while palladium was up 0.3% at $1,870.56.

"Easing semi-conductor supply tightness could revive auto-sector demand for platinum group metals. That said, doubts around the economic outlook could cap the upside," ANZ said in a note.