US inflation data is the focus
CPI expected to rise 6.5% from 7.1%
Gold prices rebounded after slipping from record highs as investors braced for the release of US inflation data.
In the Asian session, spot gold rose to around $1,884 per ounce, while gold futures traded at $1,887 per ounce.
The yellow metal hit a fresh 8-month high of $1,886 before easing to $1,867 during Wednesday's trading session.
However, prices bounced back on Thursday as investors focused on US inflation data that could influence the Federal Reserve's (Fed) policy decision.
The US consumer price index (CPI) is projected to rise 6.5% in December, down from the 7.1% year-on-year recorded last November.
Although gold is usually considered an inflation hedge, any change in the central bank's monetary policy can affect the trading of the precious metal.
Markets are now expecting that falling inflation will finally prompt the Fed to stop its current cycle of rate hikes.
