The desire for safe haven assets in the face of uncertainty around the U.S. debt ceiling and slowing economic growth helped lift gold prices above crucial support levels on Wednesday. However, attention is still on the day's important inflation statistics.

Spot gold edged up by 0.1% to $2,037.38 per ounce, meanwhile gold futures steadied at 0.1% to $2,044.35 per ounce. Both were trading at 1% this week.

President Joe Biden met with Republican legislators on Tuesday, but there was little real movement made toward raising the debt ceiling, despite Biden's assurances that the United States will not default.

However, the ongoing deadlock over lifting the U.S. spending cap continued to sour sentiment, particularly as the deadline of June 1 draws near. Demand for gold was mostly supported by worries about an unprecedented U.S. default.

After briefly reaching record highs this week on growing concerns about a U.S. financial collapse, gold looks to have found new support near $2,000 per ounce.

The Fed's decision to raise interest rates will undoubtedly be influenced by important consumer price index inflation data that is scheduled for release later today. Although it is anticipated that inflation will have marginally decreased in April compared to the previous month, it is still anticipated to register considerably above the Fed's 2% annual objective.