Gold Prices Steady Amid Oil-Driven Inflation Concerns, US CPI Data Looming

Gold prices held steady on Wednesday after hitting a 10-week high in the previous session. The precious metal was trading at $4,377.79 per ounce, up 0.3% from Tuesday's close.

The gains were tempered by concerns about oil-driven inflation, which kept pressure on central banks to keep interest rates high. This made non-yielding gold less attractive to investors.

Oil prices rose as doubts about a U.S.-Iran peace deal and attacks on two ships fueled concerns about Middle East supply disruptions. The U.S. Consumer Price Index data due later in the day could reshape the interest rate outlook, said Fed Bank of Chicago President Austan Goolsbee.

The U.S. Treasury yields are expected to decline over the coming year, according to a Reuters poll of bond strategists. Meanwhile, India's markets regulator proposed extending rules governing vault managers to cover all physically settled bullion underlying SEBI-regulated products.