Gold hovers near 4-month high as dollar eases; Fed minutes in focus

* The dollar index held close to a near three-month low against its rivals, making gold less expensive for other currency holders. [

* Market participants are waiting for the release of minutes from the US Fed’s April 27-28 policy meeting at 1800 GMT for further clarity on economic recovery and policymakers’ view on inflation.

* Data on Tuesday showed US homebuilding fell more than expected in April, likely pulled down by soaring prices for lumber and other materials.

* Concerns over rising inflation intensified as US consumer prices rose 4.2percent in April from a year earlier, the fastest increase in more than a decade.

* The US central bank has pledged to keep interest rates low until the economy reaches full employment and Fed officials have repeatedly maintained they expect any rise in inflation to be short-lived.

* World powers, including the United States, urged a truce in the conflict as Israel bombarded Gaza with airstrikes and Palestinian militants resumed cross-border rocket fire on Tuesday.

* Palladium gained 0.2percent to USD 2,907.09 per ounce, silver eased 0.2percent to USD 28.15, while platinum edged 0.2percent higher to USD 1,220.50.