Gold Prices Slide Amid Inflation Data Anxiety

Gold prices continued their downward trend on Wednesday, poised to end September in the red. Investors were bracing for US inflation data, which could provide clues about the Federal Reserve's next policy move and influence interest rates.

The precious metal had seen some gains after a softer-than-expected US inflation reading hurt the dollar and raised hopes that the Fed might not raise interest rates as soon as October. However, these gains were short-lived, and gold prices remained in negative territory for the month so far.

Spot gold was trading at $4,209.71 an ounce, a 0.7% increase from earlier, but still down 5.4% for September. US gold futures also gained 1.5% to reach $4,241.90.