Gold edged up on Thursday, rebounding a bit from a tense period since the begining of the new year, Eyes are now on the next US inflation figures that will give more hints about Fed’s stance from interest rate cut.

Spot gold added 0.4% to $2,031.78 per ounce, meanwhile gold futures advanced by 0.4% to $2,035.80 per ounce. Both ticked down by 1.7% till now since the beginning of the year.

During the first week of January, gold continued to plummet as speculators wondered whether Fed will start reducing interest rates as early as March 2024.

The dollar sharply increased in value on unpredictability around rate cuts, which also had an impact on gold. However, the dollar lost most of its recent gains this week, as traders mainly kept their bets for a rate cut in March.

This gave gold prices some respite, but they were still trading between $2,000 and $2,050 per ounce for the whole of December.

CPI figures for December are now expected to be released later in the day, causing markets to wait. While core CPI is predicted to continue declining, headline CPI inflation is predicted to have edged a bit.