Gold Rebounds Ahead of US Inflation Data as Dollar Weakness Takes Hold

Gold prices rebounded on Wednesday, ending a three-day losing streak, as a weaker US dollar supported prices ahead of key inflation data. Spot gold rose by as much as 1.6% to move back above $4,400 an ounce.

The recovery follows a near 3% decline since the end of last week, driven by expectations of higher interest rates and rising oil prices. Analysts point to softer US dollar and technical buying as catalysts for the rebound.

Attention is now turning to this week's US inflation figures, which could provide greater clarity on the Federal Reserve's next move. The producer price index (PPI) is due on Thursday, followed by the more closely watched consumer price index (CPI) on Friday.