Gold gained on Wednesday after an inflation print came in line with expectations, boosting the likelihood of a Federal Reserve rate cut next week, while investors awaited U.S. Producer Price Index (PPI) data for further direction on monetary policy.

All eyes are now on the upcoming producer price data due on Thursday for further clarity on Fed rate cut path.

Fresh inflation data set for release on Wednesday will provide an update on prices ahead of the holidays and help determine the outcome of an interest rate decision at the Federal Reserve slated for next week.

Gold prices edged higher for a fifth consecutive session, nearing a two-week high, boosted by expectations of a Fed rate cut next week. U.S. inflation data met forecasts, reinforcing the likelihood of a third rate reduction.