* US CPI data at 1230 GMT
* FOMC begins two-day meeting on Tuesday
* ANZ sees platinum near $1,150/oz, palladium $1,420 by end-2023
June 13 (Reuters) - Gold edged higher as the dollar softened on Tuesday but lacked the momentum to break out of a recent tight range as traders positioned for U.S. inflation data and the Federal Reserve's policy decision.
Spot gold rose 0.3% to $1,962.59 per ounce by 0814 GMT. U.S. gold futures gained 0.3% to $1,975.80.
"Bigger moves are unlikely to take place before the release of the U.S. CPI data later today," UBS analyst Giovanni Staunovo said, adding that the slightly weaker dollar was offering gold some support.
The dollar eased 0.3% to near its lowest in three weeks, making greenback-priced bullion more appealing to overseas buyers.
U.S. May CPI is expected to rise 0.2% on a monthly basis, after a 0.4% rise the prior month, according to economists polled by Reuters.
Yet expectations of U.S. economic growth weakening could support gold prices, Staunovo added.
While gold is seen as a hedge against inflation, higher rates to tame price pressures generally weigh on the non-yielding asset's appeal.
Traders and most big Wall Street banks see a 76% chance of the Fed standing pat on rates on June 14, according to the CME FedWatch tool.
However, traders see a 56% chance of a 25 bps rate hike in July.
Base metals prices, meanwhile, rose on hopes of improved demand after top consumer China cut borrowing costs to boost economic growth.
In Britain, employment and wage growth soared in the three months to April while unemployment fell, adding to pressure on the Bank of England to raise rates later this month.
Gold priced in the euro and sterling fell around 0.2%.
Silver rose 0.6% to $24.19 per ounce, platinum gained 0.4% to $993.61 while palladium was up 0.7% at$1,358.72.
ANZ expects platinum prices to move towards $1,150/oz and palladium to hover near $1,420/oz by the end of the year.
(Reporting by Seher Dareen in Bengaluru, additional reporting Arundhati Sarkar; Editing by Kirsten Donovan)
