BENGALURU: Gold prices inched lower on Wednesday due to a slight uptick in US bond yields, although bullion was still stuck in a narrow range as investors looked forward to inflation data and Federal Reserve policy meeting next week. Spot gold was down 0.1% at $1,960.49 per ounce by 09:40 a.m. EDT (1340 GMT).

US gold futures fell 0.3% to $1,976.50. Benchmark 10-year Treasury yields ticked higher to 3.706%, increasing the opportunity cost of holding non-interest bearing gold. “Yields have remained relatively elevated keeping some light pressure on the gold market,” said David Meger, director of metals trading, High Ridge Futures.

“Clearly inflation is still the main focal point of this market. At this point the expectation is that the Fed is going to pause. However, if those inflationary numbers remain extremely elevated, you could see a shift in outlook.”