Gold edged up after three days of declines, boosted by a slight fall in Treasury yields ahead of a likely pause in the Federal Reserve's aggressive monetary-tightening cycle.

After US data on Tuesday showed inflation slowing on an annual basis, short-term Treasury yields rose to the highest levels since March, which is generally negative for gold as the metal doesn't offer any interest. Bullion has fallen more than 5% since hitting a peak in early May.

The inflation data was seen by traders as confirmation that the Fed will hold rates in the 5%-5.25% range later Wednesday. Swap traders put the odds of an increase at only 10%, while still seeing the potential for a July move.

Spot gold was 0.2% higher at $1,947.81 an ounce as of 1:42 p.m. in Singapore, after closing 0.7% lower in the previous session. The Bloomberg Dollar Spot Index was little changed. Silver, platinum and palladium gained.

Source : Bloomberg