Gold edged higher following a bruising run that came after Donald Trump's election win spurred a rally in the dollar. 

A gauge of the greenback has risen to its highest level in almost two years, making gold and other commodities priced in dollars more expensive for most buyers. Hedge funds have been unwinding bullish wagers on the precious metal and exchange-traded fund flows turned less supportive amid a widespread rotation into US equities.

Bullion has slipped more than 6% from an all-time high on Oct. 31, but is still up by over a quarter this year. It has been supported by the Federal Reserve's monetary-easing cycle, central bank purchases and heightened geopolitical and economic risks that drove haven demand.

Investors will look to the US core consumer price index report, which excludes food and energy, due later Wednesday for clues on the Fed's next steps after the US central bank cut rates by 25 basis points last week. Many economists see the potential inflationary impact of Trump's policies, including trade tariffs, leading to fewer rate cuts than previously expected. Lower borrowing costs tend to benefit gold, which doesn't pay interest.

Spot gold was up 0.4% at $2,608.58 an ounce as of 9:20 a.m. in London, following a 0.8% decline in the previous session. The Bloomberg Dollar Spot Index was little changed following three days of gains. Silver rose, while palladium and platinum were steady.

Source : Bloomberg