Gold (XAU/USD) prices extended its sideways consolidative price movement near weekly tops during the early European session on Wednesday (3/12) as traders remained on the sidelines ahead of the US consumer inflation figures. The crucial US Consumer Price Index (CPI) will be eyed for fresh cues on the Federal Reserve's (Fed) rate cut path, which in turn, will boost the US Dollar (USD) demand and provide a fresh directional impetus to the non-yielding yellow metal.

Some repositioning trade ahead of the key data risk helped the USD gain some positive traction and reverse a part of its overnight losses to the lowest level since October 16. This, along with a positive turnaround across global equity markets, acted as a headwind for Gold prices. However, concerns over US President Donald Trump's trade tariffs, global trade wars and their impact on the world economy, as well as Fed rate cut bets continue to support the bullion as a safe-haven asset. (Newsmaker23)

Source: FXstreet