Gold prices stabilized on Wednesday as traders awaited U.S. inflation data set to be released later today, which could impact monetary policy decisions by the Federal Reserve.
As of 02:01 GMT, spot gold held steady at $2,032.86 per ounce, while U.S. gold futures declined by 0.1% to $2,041.50 per ounce.
For other precious metals, silver fell 0.1% to $25.58 per ounce, platinum increased by 0.1% to $1,105.82, and palladium rose by 0.1% to $1,571.23.
The U.S. Consumer Price Index data is scheduled for release at 12:30 GMT. Economists surveyed by Reuters expect a 5.5% year-on-year increase in core consumer prices for April.
Markets are currently pricing in an 83% probability that the Federal Reserve will maintain interest rates at their current level in June.
Although gold is considered a hedge against inflation, rising interest rates diminish the appeal of non-yielding bullion.
Investors are closely monitoring developments surrounding the U.S. debt ceiling. President Joe Biden and senior lawmakers agreed on Tuesday to hold further talks aimed at breaking the deadlock over raising the U.S. debt ceiling of $31.4 trillion, just three weeks before the country may face an unprecedented default.
