Gold prices rose in Asian trade on Wednesday, extending a recent rebound as the dollar retreated in anticipation of more cues on U.S. interest rates, most notably from the minutes of the Federal Reserve’s late-January meeting. 

Still, the yellow metal remained largely within a $2,000 to $2,050 an ounce trading range established over the past month, as the outlook for gold was clouded by the prospect of higher-for-longer U.S. interest rates.

The U.S. dollar slipped lower in early European trade Tuesday, but remains close to recent highs given the prospects of higher-for-longer U.S. interest rates, while the euro faces a wages test later in the session.

At 04:45 ET (09:45 GMT), the Dollar Index, which tracks the greenback against a basket of six other currencies, traded 0.1% lower at 104.082. 

Gold prices rose in Asian trade on Monday, extending a rebound from one-month lows after recently breaking below a key support level, although fears of higher-for-longer U.S. rates kept prices largely rangebound. 

The yellow metal had briefly broken below the $2,000 an ounce earlier in February, as stronger-than-expected U.S. inflation readings saw traders largely price out the prospect of early interest rate cuts by the Federal Reserve. 

Oil prices settled higher Friday, notching a weekly gain as rising Middle East tensions continued to fuel jitters about potential supply disruptions at time when concerns about the demand outlook remain elevated.    

At 14:30 ET (19.30 GMT), West Texas Intermediate crude futures rose 1.5% to $79.19 per barrel, while Brent oil futures expiring in April rose 0.6% to $83.35 a barrel.

The dollar retreated on Friday amid concerns about the strength of the U.S. economy after higher-than-expected producer prices raised expectations that the Federal Reserve will desist from cutting interest rates until at least the middle of the year.

The rise in producer prices reported by the Labor Department was the largest in five months and followed a hotter-than-expected report on Tuesday for consumer prices last month.

Gold prices moved little in Asian trade on Friday after retaking a key level as weak U.S. retail sales data spurred some doubts over when the Federal Reserve will begin cutting interest rates.

Bullion prices rose back above the $2,000 an ounce level on Thursday after breaking well below the level earlier in the week. Some safe haven demand- following data showing recessions in Japan and the UK- also aided gold prices. 

The dollar slid from a fresh three-month high against a major currency basket on Wednesday, as investors consolidated gains following the previous session's hotter-than-expected U.S. inflation report.

The inflation data for January pushed back bets on a first Federal Reserve rate cut to the middle of the year.

Gold prices fell below a key support level in Asian trade on Wednesday after a hotter-than-expected inflation reading for January spurred more fears that the Federal Reserve will keep rates higher for longer. 

The yellow metal saw extended losses after spot prices slid below the closely-watched $2,000 an ounce support on Tuesday, with analysts warning of more potential declines after the loss of the key support level. 

Cryptocurrency stocks are rising Wednesday on the back of the continued climb in the price of Bitcoin, which has climbed a further 4%.

Bitcoin is currently trading around $51,770, its highest level since December 2021. The rise has taken its market cap to $1 trillion. Ethereum, the second-largest cryptocurrency, is up close to 4% at the time of writing, trading at around $2,746.

The dollar rose to three-month peaks on Tuesday, after data showed U.S. inflation rose more than expected in January, reinforcing expectations that the Federal Reserve will hold interest rates steady in March.

The greenback also topped 150 yen for the first time since November following the data.