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.

US and European stock markets mostly rose on Wednesday after inflation data cemented expectations that the Federal Reserve will trim interest rates next month.

Gold prices were flat on Wednesday as investors awaited a U.S. inflation print that could influence the likelihood of a Federal Reserve's interest rate cut next week and offer clues on the central bank's 2025 outlook.

The Federal Reserve is widely expected to cut interest rates again next week, a move fueled by inflation data that met Wall Street’s expectations. However, persistent inflationary pressures are prompting some central bank analysts to revise their forecasts for 2025,