The yellow metal was trading at a one-week low as market focus turned to the release of US consumer inflation data and the FOMC policy meeting.
The Asian session saw gold prices slightly higher at $1,784 an ounce after falling from the $1,800 level earlier in the week.
Although consumer inflation figures to be published in the New York session today are expected to show inflation continuing to decline in November, the market remains wary of any potential strength.
This is because the US producer price index (PPI) released last Friday showed a stronger increase than expected in November.
This indirectly triggered the market's anxiety about a possible similar trend in the consumer price index (CPI) to be released.
Any surprising reading is feared to influence the decision of the FOMC policy meeting that will take place on Thursday this week (Malaysian time).
