On Wednesday, gold prices remained close to one-month lows as the dollar gained strength due to deteriorating market mood and the possibility of additional Federal Reserve rate hikes.

Spot gold muted at the lowest level in one month at $1,926.20 per ounce, while gold futures steadied at $1,960.05 per ounce.

As poor trade figures from China, the world's top exporter, suggested that demand for the red metal was waning, copper prices carried on their recent losses.

As investors awaited additional economic clues from Thursday's consumer price index (CPI) inflation data in the United States, the dollar's strength maintained the overall metal markets in decline.

Prior to the inflation report, investors continued to favor the dollar as a safe haven because of the declining global risk sentiment brought on by Moody's downgrading of numerous U.S. banks and the disappointing Chinese trade statistics.

The direction of monetary policy and other important factors are now fully in the spotlight thanks to the U.S. CPI statistics.