Gold inched higher on Monday as elevated U.S. consumer prices lifted its appeal as an inflation hedge, while investors awaited a flurry of central bank meetings this week, including by the U.S. Federal Reserve, for further direction. FUNDAMENTALS * Spot gold rose 0.2% to $1,786.51 per ounce by 0213 GMT, after Friday"s 0.8% gain. U.S. gold futures were up 0.2% to $1,787.70. * U.S. consumer prices increased further in November as the cost of goods and services rose broadly amid supply constraints, leading to the largest annual gain since 1982. read more * The dollar index was quiet at the start of a week in which central bank meetings will likely drive currency markets. * The Fed is widely expected to signal a faster tapering of asset buying this week, and thus an earlier start to rate hikes. * The European Central Bank and the Bank of Japan are set to review their monetary policies this week. * Reduced stimulus and interest rate hikes tend to push government bond yields up, raising the opportunity cost of holding bullion, which bears no interest. * The European Central Bank is set to halve the amount of assets it buys each month from April, according to a Reuters poll. * Top Asian hubs saw healthy demand for physical gold last week as domestic prices retreated into the year-end, although volatility in rates deterred retail buyers and jewellers in India. * Spot silver rose 0.4% to $22.26 an ounce. * Platinum was flat at $942.00 and palladium gained 1.4% to $1,786.54.