Gold inches up after sharp drop on US inflation data

Gold prices stabilized on Wednesday, November 11, recouping modest ground after a sharp overnight slump triggered by hotter-than-expected U.S. inflation readings.

Spot gold rose 0.2% to $4,030.56 per troy ounce, bouncing off an overnight loss of 2.6%.

A stronger dollar and rising U.S. Treasury yields had weighed heavily on the non-yielding bullion after October core inflation surpassed market expectations, fueling investor concern that the Federal Reserve could deliver an interest rate hike in December.