Gold prices remained relatively stable near $4,155 per ounce on Wednesday as investors awaited US inflation figures that could influence expectations for Federal Reserve interest rate decisions.
The precious metal held close to a two-day low after recording a combined decline of approximately 0.8% over the previous two sessions, reflecting uncertainty surrounding the outlook for US monetary policy.
Market participants are focusing on the release of September's Consumer Price Index, which is expected to provide fresh evidence about the persistence of inflationary pressures in the world's largest economy.
Although recent weakness in the US dollar offered some support to bullion, expectations that the Federal Reserve could raise interest rates again have limited buying momentum.
Higher interest rates generally increase the opportunity cost of holding gold, which does not generate interest income.
Meanwhile, geopolitical uncertainty in the Middle East continues to support demand for defensive assets, particularly as oil-market disruptions raise concerns about inflation and global economic stability.
Other precious metals recorded mixed performance, with silver trading near $59 per ounce while platinum edged lower.
The next direction for gold is likely to depend on the inflation reading and the market's interpretation of Federal Reserve policy, with traders monitoring developments across the dollar, government bond yields and commodity markets.
