Gold prices inched higher Wednesday as the dollar eased, with traders' attention turning to key U.S. inflation data that may influence the Federal Reserve's next policy decision.
Spot gold was up 0.2% at $2,524.54 per ounce, as of 0842 GMT. U.S. gold futures edged 0.4% higher to $2,553.80.
The dollar index slipped 0.2%, making greenback-priced bullion more attractive to buyers holding other currencies.
The U.S. inflation Consumer Price Index (CPI) data is due at 1230 GMT. The headline CPI is expected to have risen 0.2% on a month-on-month basis in August, according to a Reuters poll, unchanged from the previous month.
The Fed will lower interest rates by 25 basis points at each of the three remaining policy meetings in 2024, according to a majority of economists in a Reuters poll that found only nine of 101 expected a half-percentage-point cut next week.
Lower rates boost the appeal of holding non-yielding bullion.
A rate cut should suggest a weaker dollar and by extension gold would benefit but the market might have over-positioned ahead of the long awaited Fed pivot, so prices might go lower before marching much higher, said independent analyst Ross Norman.
"Gold maintains its range-trading, but with a positive bias. We may see fresh highs in gold in 2024 and I would not be surprised to see a test of $2,650," Norman added.
Other data points due this week include the U.S. producer Price Index reading and initial jobless claims.
Bullion has gained more than 22% so far this year and scaled successive record highs, fueled by rate-cut optimism, geopolitical turmoil and robust central bank demand.
Among other metals, spot silver was up 1.3% at $28.76 per ounce, platinum inched 0.1% higher to $938.34 and palladium firmed 1.1% to $975.50.