Gold stabilizes as markets await US inflation data

The US Consumer Price Index (CPI) data is scheduled to be released at 12:30 GMT, with producer price data and retail sales to be released on Thursday.

The "FedWatch" tool from the CME Group showed that markets estimate the probability of a US interest rate hike this month at 23%, compared to 88% in December.

Gold, which yields no return, usually comes under pressure when interest rates rise.

New York Federal Reserve Bank President John Williams said that the US central bank might need to raise interest rates again this year as part of its efforts to lower inflation.

The International Monetary Fund warned on Tuesday of significant risks threatening growth and financial stability, in light of the potential end of the artificial intelligence investment boom, rising debt levels, and the continuation of the conflict in the Middle East for a long period.

In regional developments, the Saudi Ministry of Energy said that an administrative building belonging to the state-owned oil company Aramco was attacked in the city of Dhahran in the east of the Kingdom, amid escalating fighting between the Iran-aligned Houthi group in Yemen and Saudi Arabia.

In other precious metals markets, spot silver fell 0.5% to $25.19 per ounce, platinum dropped 0.4% to $936.08, while palladium fell 0.1% to $1,044.39.