Gold prices moved higher on Wednesday, and the most active gold futures contract ended at 1-week high, after suffering losses in the previous session.
Concerns about growth amid continued surge in coronavirus cases supported the yellow metal. However, a fairly strong dollar limited the commodity's upside.
Besides digesting inflation data, traders were also closely following the developments on the political front. The Democratic-controlled House is likely to vote later in the day to impeach President Donald Trump for his apparent role in sparking a violent attack on the U.S. Capitol.
The dollar index, which advanced to 90.45, was last seen at 90.34, up 0.27% from previous close.
Gold futures for February ended up $10.70 or about 0.6% at $1,854.90 an ounce.
Silver futures for March closed up by $0.137 at $25.572 an ounce, while Copper futures for March settled at $3.6170 per pound, gaining $0.0115.
According to a report released by the Labor Department Wednesday morning, U.S. consumer prices increased in line with economist estimates in the month of December.
The report said the consumer price index rose by 0.4% in December after edging up by 0.2% in November.
The Labor Department said the advance by the consumer price index was driven by an 8.4% jump in gasoline prices, which accounted for more than 60% of the overall increase.
Excluding food and energy prices, the core consumer price index inched up by 0.1% in December after rising by 0.2% in November. The uptick in core prices also matched economist estimates.