Gold gains on softer dollar --

Gold prices edged up on Wednesday, supported by a slightly weaker US dollar ahead of a critical inflation report that could offer some clues on whether the Federal Reserve will begin cutting interest rates this year, reports Reuters.

Spot gold gained 0.2 per cent to $2,033.90 per ounce, as of 1148 GMT. US gold futures rose 0.3 per cent to $2,040.00 per ounce.

"If the CPI figures exceed market expectations, perhaps forcing the Fed to delay its policy pivot, that could force bullion to relinquish more of its gains from the final quarter of 2023," said Han Tan, chief market analyst at Exinity Group.

"However, further evidence of US disinflation taking hold may propel spot gold closer to $2,100 in the immediate term."

The dollar index ticked down about 0.1 per cent against a basket of currencies, making bullion more attractive for foreign currency holders.