* Chinese markets closed for new year holiday
* U.S. Jan Consumer Price Index came in lower than expected
* CME raises platinum futures margins by 10% (Updates prices)
By Sumita Layek
Feb 11 (Reuters) - Gold edged lower on Thursday as the dollar's recovery from a two-week trough hit in the previous session and a softer U.S. inflation data dampened bullion's appeal.
Spot gold XAU= fell 0.3% to $1,837.13 per ounce by 0636 GMT, after hitting a more than one-week high on Wednesday.
U.S. gold futures GCv1 slipped 0.3% to $1,837.40.
"The dollar has rebounded from Wednesday's low, that's putting some pressure on precious metals. Low liquidity due to Chinese new year holiday is also weighing on the prices," said DailyFX strategist Margaret Yang. .DXY
Gold has also lost some support as U.S. data showed there is not much of inflation down the road, Yang said.
The U.S. Consumer Price Index for January came in lower than expected. Gold is considered a hedge against inflation. Federal Reserve Chair Jerome Powell in a speech on Wednesday emphasised on the need for fiscal policy and said it is the not the right time to focus on federal debt issues. kept a close watch on the developments on the passage of a $1.9 trillion U.S. relief bill. quite a mixed narrative right now," said Stephen Innes, chief global market strategist at financial services firm Axi.
"Too much stimulus in the market could force the Fed to tighten the monetary policy, that's negative for gold, but if the stimulus isn't big enough, gold is not going to benefit."
Autocatalyst platinum XPT= rose 0.3% to $1,244.84 an ounce, having notching a peak since February 2015 of $1,250 on Wednesday.
"The bottom line is there could be a shortage" as platinum's demand surges for automobiles and fabrication, Innes said. Group raised margins for platinum futures by 10%. silver XAG= shed 0.5% to $26.86 and palladium XPD= eased 0.6% to $2,340.94.