Gold rebounded higher on Tuesday after US economic data showed slowing producer inflation.
The weakening US dollar also reignited hopes of monetary easing by the Federal Reserve (Fed) and touched $2,670 yesterday.
At 9.20am, gold was at $2,673.70, down 0.15% since it opened in early trading on Wednesday in the Asian session.
The yellow metal recovered after opening lower in early trading earlier in the week after the US Bureau of Labor Statistics (BLS) revealed that the Producer Price Index (PPI) rose.
The figure further capped gold's rally as investors awaited Wednesday's Consumer Price Index (CPI) report, which is expected to be more modest and could increase the Fed's chances of easing policy throughout the year.
Market participants are eyeing the December CPI release to be below the previous month's 2.7% figure and this could indicate further disinflation.
Earlier, Kansas City Fed President Jeffrey Schmid said the Fed would act if Trump's tariffs caused inflation or jobs to derail.
However, gold prices will also be affected as news of the impending Gaza war subsides.
