*Fed minutes due at 1900 GMT*U.S. dollar index down 0.1%*U.S. 10-yr Treasury yields hit highest since November*Silver, platinum off one-week highs marked on Tuesday(Adds details, updates prices)Feb 22 (Reuters) – Gold prices rose marginally on Wednesday, as investors awaited minutes of the U.S. Federal Reserve’s latest policy meeting to assess prospects of further interest rate hikes.Spot gold was up 0.1% at $1,835.79 per ounce, as of 0643 GMT. U.S. gold futures firmed 0.1% to $1,844.00.Although gold is considered an inflation hedge, rising interest rates increase the opportunity cost of holding bullion since it pays no interest.“Gold is leaning on the ropes, but it’s not doing too bad considering how high U.S. yields have moved – following a slew of strong economic data, which points to a higher terminal Fed rate,” said Matt Simpson, a senior market analyst at City Index.Data on Tuesday showed U.S. business activity unexpectedly rebounded in February to its highest level in eight months – the latest in a stream of data that have shown signs of a resilient U.S. economy and a tight labour market.“Traders will be more sensitive to hawkish clues in the FOMC (Federal Open Market Committee) minutes, which could weigh on gold prices,” said City Index’s Simpson.“There’s a greater chance of gold testing $1,800 before it tests $1,900 over the foreseeable future… given the prospects of markets repricing a higher terminal Fed rate,” Simpson added.Minutes of the Fed’s latest meeting are due at 1900 GMT on Wednesday. The Fed raised rates by 25 basis points at its Jan. 31-Feb. 1 meeting, and is expected to raise benchmark rates above 5% by May with a peak seen at 5.347% in July.Gold may retest a support of $1,830 per ounce, a break below which could open the way to $1,816, according to Reuterstechnicalanalyst Wang Tao.The dollar index eased 0.1%, making greenback-priced bullion less expensive for buyers holding other currencies. Benchmark U.S. 10-year Treasury yields hit their highest since November.Spot silver was little changed at $21.83 per ounce and platinum firmed 0.2% to $944.18. Both metals were off one-week highs hit on Tuesday.Palladium lost 0.4% to $1,518.92. (Reporting by Kavya Guduru in Bengaluru; Editing by Rashmi Aich, Subhranshu Sahu and Varun H K)
