Gold prices steadied in Asian trade on Wednesday, recovering from a plunge after touching record peaks, following solid US inflation figures, which spiked the concerns over lingered higher interest rate for extended period.

Spot gold muted at $2,159.32 per ounce, while gold futures dipped 0.1% to $2,164.45 per ounce.

The price of gold also experienced some profit-taking after reaching as high as $2,200 previously this week. Gold initially surged due to speculation about early interest rate cuts by the Federal Reserve. However, Tuesday's consumer price index data quickly dampened those expectations.

CPI figures advanced a bit above February projection, lingering over 2% Fed's target.

The data suggests that the Federal Reserve has less incentive to start reducing interest rates prematurely. However, traders are still betting with a 70% likelihood of a 25 basis point cut in June, as indicated by the CME Fedwatch tool.

The current CPI data shifts attention squarely towards upcoming readings on the producer price index and retail sales, indicating potential further cuts to support the U.S. economy. Any additional signs of resilience in the economy provide the Federal Reserve with greater flexibility to maintain higher interest rates for an extended period.