Gold futures ended higher on Wednesday as the dollar exhibited weakness and yields on government bonds stabilised.
Data showing a modest increase in U.S. inflation weighed on gold prices early on in the session, but the safe haven asset pared losses to eventually settle modestly higher.
The dollar index dropped to a low of 91.80 around mid morning, and despite rebounding into positive territory by noon, faltered again and was last seen at 91.84, down 0.13% from previous close.
Gold futures for April ended up by $4.90 at $1,721.80 an ounce, gaining for a second straight day. On Tuesday, gold futures gained 2.3%.
Silver futures for May ended lower by $0.053 or 0.3% at $26.130 an ounce, while Copper futures for May settled at $4.0325 per pound, up $0.0240 from previous close.
Data released by the Labor Department this morning showed consumer prices in the U.S. increased in line with economist estimates in the month of February, climbing by 0.4% in the month, after rising by 0.3% in January.
Traders were looking ahead to the European Central Bank’s monetary policy announcement, due on Thursday. The bank is widely expected to step up its asset purchase pace to counter rising bond yields.