* British inflation hits 10-year peak in October
* Gold could trade in $1,850-$1,875 range in near-term- analyst
* Silver demand could rise this year - Silver Institute
Nov 18 (Reuters) - Gold prices eased on Thursday, as uncertainty over the pace at which central banks could raise interest rates to curb growing inflation weighed on bullion’s appeal and offset a dip in the dollar.
Spot gold fell 0.1% to $1,864.40 per ounce by 0739 GMT. U.S. gold futures dropped 0.2% to $1,866.00.
Bullion prices had scaled their highest in more than five months on Tuesday amid increasing worries about higher inflation. Data showed British inflation hit a 10-year high last month and U.S. consumer prices accelerated in October.
But rising inflation has also bolstered bets of an interest rate hike by the Bank of England in December and the U.S. Federal Reserve next year.
“The gold market is positioned for the Fed to do something now, but the big question is will they accelerate taper plans?” said Stephen Innes, managing partner at SPI Asset Management.
“Until the Fed actually signals an accelerated taper, gold should hold its current $1,850 and $1,875 range with the potential appointment of Lael Brainard as the new Fed Chair, who is considered a super dove, likely to push it above $1,875.”
U.S. President Joe Biden will likely decide on the Fed chair appointment before Thanksgiving, a White House spokesperson said on Wednesday.
Gold is often viewed as a hedge against inflation but higher interest rates raise the non-interest bearing metal’s opportunity cost.
Capping gold’s losses, was a weaker dollar, which reduces bullion’s cost to buyers holding other currencies.
Spot gold XAU= may revisit its Nov. 16 high of $1,876.90 per ounce, as it could have resumed its uptrend, according to Reuters technical analyst Wang Tao.
Spot silver steadied at $25.05 per ounce.
Global silver demand could exceed a billion ounces for the first time since 2015 this year, the Silver Institute said in a report.
Platinum was little changed at $1,057.20, while palladium fell 1% to $2,166.95.
Reporting by Nakul Iyer in Bengaluru; Editing by Rashmi Aich, Subhranshu Sahu and Shailesh Kuber