Gold holds steady near $4,175 ahead of US inflation data

According to Mettis Global, gold was broadly flat on Wednesday as traders looked to upcoming American inflation figures for direction on the Federal Reserve's policy path. Spot gold stood 1.12% higher at $4,174.86 an ounce at the time of the report. CNBC reported that the personal consumption expenditures reading lands at 1230 GMT.

A firmer dollar, on course for a monthly gain, has weighed on bullion this month by making metals priced in dollars costlier for holders of other currencies. Higher interest rates also tend to reduce gold's appeal because the metal pays no yield. Pricing tracked by CME's FedWatch Tool put the odds of a further rate increase in October at 47% and in December at 91%. The US central bank increased rates by 25 basis points this month.

Silver fell 0.8% to $60.98, platinum was unchanged at $1,705.10 and palladium slipped 0.3% to $1,219.60. Elsewhere, Qatar voiced optimism that back-and-forth mediation linking Tehran and Washington might yield a breakthrough, while President Donald Trump denied reports he would loosen restrictions and unlock frozen Iranian funds in return for nuclear concessions.