Gold prices fell on Wednesday as the dollar firmed and yields rose ahead of US inflation data that could help investors gauge the path of the Federal Reserve's monetary policy.

Spot gold fell 0.4% to $1,823.84 per ounce by 1141 GMT. US gold futures for December delivery fell 0.33% to $1,824.70 per ounce.

"Gold has been losing momentum heading into the inflation data... a stronger-than-expected reading in US consumer prices would take the wind out of gold's sails once again," said Craig Erlam, senior market analyst at OANDA.

Prices of bullion have hovered at two-month highs over the past few sessions after assurances from key central banks last week that interest rates would remain low for the time being, with the Federal Reserve sticking to its view that inflation is "transitory."

Gold steadies near 2-month high as US inflation data in focus

The precious metal benefits from low rates as they reduce the opportunity cost of holding gold, which yields no interest.

"Gold is benefiting from the prospect of central banks pushing back against market expectations (for a rate hike), but higher inflation makes that job much harder," Erlam said.

A tight US labour market and the dislocation in global supply chains could result in a high reading for US consumer prices due at 8:30 a.m. ET (1330 GMT).

Piling pressure on gold, the benchmark 10-year yield rose to 1.4830%, and the dollar gained 0.3% against its rivals, making gold expensive to holders of other currencies.

Elsewhere, spot silver fell 0.6% to $24.13 per ounce, platinum declined 0.6% to $1,052.75 per ounce, and palladium dipped 0.04% to $2,020.26 per ounce.