Gold stabilized on Wednesday although caution prevailed as US inflation figures approach, which could set the tone for future monetary policy. The precious metal is supported by the weakness of the dollar.

Spot gold was up 0.1% at $1,925.69 per ounce at 10:10am GMT, after falling to its lowest level since July 10 at $1,922 on Tuesday. U.S. gold futures were unchanged at $1,959.80. Gold has remained within a narrow range, stuck between central bank support and the prospect of higher real rates as inflation cools, said Xiao Fu, an analyst at Bank of China International

Gold, which is generally considered to protect against economic risks, was also supported by new concerns about the health of the world's largest economy after the ratings agency Moody's downgraded the ratings of several American lenders. Longer-term US Treasury yields have fallen accordingly, making non-interest-bearing bullion more attractive

Among other metals, spot silver fell slightly by 0.1% to $22.73 per ounce, platinum fell 0.8% to $892.84, and palladium fell 0.6% to $1,212.37.