Gold prices rose on Wednesday as the dollar and U.S. Treasury yields eased, with investor focus shifting to key inflation data due this week that could influence the Federal Reserve"s decision to taper its stimulus at a faster pace. Spot gold was up 0.27% at $1,788.92 per ounce, as of 0807 GMT, while U.S. gold futures rose 0.33% to $1,790.50 per ounce. Boosting bullion"s appeal, benchmark 10-year and 30-year U.S. Treasury yields retreated from a one-week high hit on Tuesday while the dollar index (.DXY) weakened 0.2%. A softer U.S. dollar decreases bullion"s cost for holders of other currencies. Bullion, viewed as a safe-haven asset, also got a lift after U.S. President Joe Biden threatened to impose "strong economic and other measures" on Russia if it invades Ukraine. read more "We"ve got this geopolitical issue bubbling in the background and that"s driving a small bid in gold," said Stephen Innes, managing partner at SPI Asset Management, adding that a potential breakout from the $1,770-$1,810 range ultimately hinged on the Fed"s decision next week. Investors also eyed Friday"s U.S. Consumer Price Index (CPI) report ahead of the Fed"s key policy meeting on Dec. 14-15. "If inflation continues to come out strong, that would cement expectations for the start of rate hikes by mid-2022. But the gold market has largely priced such rate hikes, so gold"s decline should be temporary and limited," said Harshal Barot, a senior research consultant for South Asia at Metals Focus. Reduced stimulus and interest rate hikes tend to push government bond yields higher, raising the opportunity cost of holding gold, which bears no interest. Platinum rose 1.37% to $964.49 per ounce and palladium added 0.76% to $1,867.09. Given little hope for a near-term revival of auto-catalyst demand, platinum could outperform palladium due to platinum"s applications beyond vehicles, ANZ analysts said in note. Spot silver fell 0.13% to $22.44 per ounce. Reporting by Nakul Iyer and Seher Dareen in Bengaluru; Editing by Subhranshu Sahu and Sherry Jacob-Phillips Our Standards: The Thomson Reuters Trust Principles.