Investing.com-- Gold prices moved little in Asian trade on Wednesday, hovering around a key support level as traders hunkered down before more definitive cues on U.S. rates from a Federal Reserve meeting and inflation data.

The yellow metal was nursing a sharp decline in recent sessions as traders priced out expectations of U.S. rate cuts in the face of sticky inflation and a robust labor market. The dollar shot up to one-month highs, pressuring metal prices, while Treasury yields also rose.

Spot gold fell 0.1% to $2,313.76 an ounce, while gold futures expiring in August rose 0.2% to $2,330.10 an ounce by 00:46 ET (04:46 GMT).

Gold hovers around $2,300 support, Fed and CPI awaited

Spot gold prices found support around $2,300 an ounce in their recent rout, as the prospect of eventual rate cuts by the Fed helped limit losses in the yellow metal.

The Fed is set to conclude a two-day meeting later on Wednesday and is widely expected to leave rates unchanged.

But any signals on future rate decisions will be closely watched, especially amid rampant speculation over a potential cut in September. But traders were also wary of a potentially hawkish stance from the Fed, in the wake of sticky inflation and a strong labor market.

Before the Fed meeting, consumer price index data is also due on Wednesday, and is expected to show inflation remained sticky in May. Such a trend gives the Fed more impetus to keep rates high for longer.

High rates bode poorly for precious metal markets, given that they ramp up the opportunity cost of investing in non-yielding assets.

Other precious metals rose slightly on Wednesday. Platinum futures rose 0.2% to $961.95 an ounce, while silver futures rose 0.8% to $29.470 an ounce.

Copper prices encouraged by positive Chinese factory inflation

Among industrial metals, copper prices advanced on Wednesday, recovering a measure of recent losses tracking positive cues from top importer China.

Benchmark copper futures on the London Metal Exchange rose 1.1% to $9,863.0 a tonne, while one-month copper futures rose 0.2% to $4.5255 a pound.

Producer price index inflation data from China fell slightly less than expected in May, data showed. The reading showed PPI shrank at its slowest pace in 15 months, indicating that factory activity was improving in the country.

But Chinese CPI data read weaker than expected for May, indicating that consumer spending still remained weak.

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