WASHINGTON: Gold prices edged higher on Wednesday after a nearly 3.0 per cent slide in the previous session, but gains were limited as stronger-than-expected US inflation data cemented expectations of a Federal Reserve interest rate hike next month, weighing on bullion.
Spot gold was up 0.3 per cent at US$4,043.62 per ounce by 0303 GMT after falling nearly 3.0 per cent to US$4,017.21 on Tuesday. US gold futures for December delivery gained 0.5 per cent to US$4,051.10.
"We're seeing a technical retracement against Tuesday's heavy losses, as bears book profits and wait for the next catalyst. Hot CPI and hawkish Fed comments have revived tightening expectations," said Matt Simpson, a senior market analyst at StoneX.
