Gold prices edged higher on Wednesday after a steep fall in the previous session, as investors weighed hotter-than-expected US inflation and rising bets on a December Federal Reserve rate hike.
Spot gold rose 0.5 percent to $4,051.31 an ounce by 0916 GMT, after falling as much as 3 percent to $4,013.29 on Tuesday. US gold futures for December delivery gained 0.7 percent to $4,059 an ounce.
Other metals also gained. Spot silver climbed 2.7 percent to $52.87 an ounce, while palladium rose 4.1 percent to $1,066.66.
US consumer prices rose 0.4 percent in October, above the 0.3 percent forecast by economists. Traders raised the odds of a Fed rate hike in December to 100 percent from 84 percent, according to the CME FedWatch tool.
Fed Governor Christopher Waller said a 0.3 percent core inflation reading for October would lead him to consider a half-point hike at the December meeting. Philadelphia Fed President Anna Paulson signaled further rate hikes, and Fed Vice Chair for Supervision Michelle Bowman reaffirmed the central bank's focus on curbing price pressures.
Han Tan, chief market analyst at Bybit, said gold was seeing slight relief after its declines following the inflation data, but added that it would be a tough ask for gold bulls to keep pushing prices higher.
