Gold prices barely changed on Wednesday, maintained most of its dips from the earlier week as investors wondered about the timing of interest rate decrease by Fed.

Spot gold muted at $2,029.30 per ounce, meanwhile gold futures traded flat at $2,034.65 per ounce.

The US CPI figures are highly anticipated, which is expected to show that the inflation steadied in December.

Traders gradually reduced their wagers that the Fed could start reducing interest rates as early as March 2024, which resulted in gold suffering sharp losses over the course of the previous week. The greenback saw rapid surge as a result, which affected bullion prices as well.

Nevertheless, gold held onto its value above the sought-after $2,000 per ounce mark, having easily crossed it in early December. In 2023, gold prices increased by almost 10% as well.

Anticipated CPI data for Thursday is projected to indicate a small increase in inflation in December. Sticky inflation and recent labor market resilience give the Fed greater leeway to maintain higher rates for longer.