US CPI data is due at 12:30 GMT. Economists polled by Reuters expect a 5.5% year-on-year rise in core consumer prices for April.
Markets are currently betting 83% that the US central bank will keep interest rates at their current level in June.
Although gold is considered an inflation hedge, higher interest rates make non-performing bullion less attractive.
Investors are watching developments in the US debt ceiling closely.
President Joe Biden and key lawmakers agreed on Tuesday to hold further talks aimed at breaking the impasse over raising the $31.4 trillion US debt ceiling, just three weeks before the country is forced to an unprecedented payment default.
The price change
At 02:01 GMT, gold closed spot trades at $2032.86 an ounce, and US gold futures fell 0.1% to $2041.50 an ounce. .
As for other precious metals, silver fell 0.1% to $25.58 an ounce, platinum rose 0.1% to $1,105.82 and palladium rose 0.1% to $25.58 an ounce. $1571.23 an ounce, according to Reuters data.
Read the Latest World News Today on The Eastern Herald.
