The gold price fell slightly on Wednesday. The prevails prudence style="font-family: "Bookman Old Style”, serif">before the report on consumer price inflation in the United States which could provide more clarity on the Federal Reserve's interest rate trajectory.

Spot gold fell 0.1% to $2,672.76 per ounce at 0300 GMT. US gold futures gained 0.3% to $2,689.70. Gold extended its gains on Tuesday after data showed that the producer price index rose on an annual basis in December, slightly raising hopes that the Fed would continue its rate cuts this year. According to Wang Tao, a technical analyst at Reuters, the spot gold price could fall as much as $2,635. For the latter, “if gold prices were to continue falling to break out of the November range below $2,600, the next key level would be around $2,540 and I think that could be an attractive level for long-term holders.”

Spot silver fell 0.3% to $29.81 per ounce and palladium fell 0.3% to $935.89 per ounce. Platinum settled at $935.92