The dollar's recent gain and rising yields pressured gold prices on Wednesday as investors remained cautious ahead of a crucial data on U.S. inflation that was scheduled for release later in the day.

Spot gold slumped by 0.1% to $1,911.66 per ounce, meanwhile gold futures dropped 0.1% to $1,933.85 per ounce.

As markets prepared for a potentially higher inflation figure, driven by increasing gasoline prices and robust consumer spending, gold prices fell to their lowest level in more than two weeks.

The preferred safe haven was the dollar, and a Federal Reserve meeting next week was anticipated to be influenced by Wednesday's inflation reading.

The benchmark 10-year Treasury yields were still within striking distance of a more than 20-year high as the dollar lingered below a six-month high.

Data from the consumer price index are predicted to reveal that inflation increased by 0.6% in August, picking up speed from the 0.2% monthly rate reported in July. Additionally, 0.2% core inflation increase is anticipated to be stable.