Gold prices fell on Wednesday as investors digested the reading of newly released US inflation data.
At the time of writing, gold was trading down at $1,850 an ounce in the Asian session after experiencing volatile fluctuations in the previous session.
The US consumer price index (CPI) rose 6.4% year-on-year in January from 6.5% the previous month, but missed expectations for a 6.2% rise.
The yellow metal exhibited an erratic reaction as soon as the data was released as it was surprised that the figure recorded was smaller than expected.
However, upon further examination it still shows a decline albeit at a slower rate.
Even so, it may give the Federal Reserve (Fed) an opportunity to continue raising rates by 25 basis points or keep them high for some time.
Investors are still evaluating the data released, as well as focusing on the statements made by the Federal Reserve (Fed) policymakers.
Dallas Fed President Lorie Logan said the central bank should always be prepared to continue raising rates for a longer period than previously expected.
