Gold up on inflation worries

Gold prices edged up on Wednesday as worries about inflation kept investors on tenterhooks, although US Federal Reserve Chair Jerome Powell's comments to shore up rate increases have kept non-yielding bullion's gains in check, reports Reuters.

Spot gold was up 0.2 per cent at $1,818.39 per ounce by 1014 GMT, while US gold futures eased 0.1 per cent to $1,816.60.

Gold prices are already down over 4 per cent so far this month after hitting a low of $1,786.60 an ounce on Monday, its weakest level since end-Jan.

"It's been a tough month for gold but it has enjoyed a little reprieve in recent days as the dollar has pared some of its gains," said Craig Erlam, senior market analyst at OANDA.

"While providing short-term relief, there's not much appetite still for gold and higher yields could continue to weigh, putting pressure on $1,800."

A rebound in stocks ran out of steam, while data showed British inflation hit the highest level in 40 years, offering some support to gold.