Gold prices edged lower on Wednesday as investors remained on the sidelines ahead of a key U.S. inflation print later in the day that could set the tone for the Federal Reserve's September policy meeting.

Gold prices edged lower on Wednesday as investors remained on the sidelines ahead of a key U.S. inflation print later in the day that could set the tone for the Federal Reserve's September policy meeting.

Spot gold eased 0.2% to $2,460.87 per ounce, as of 0327 GMT. Prices hit a record high of $2,483.60 last month.

U.S. gold futures edged 0.3% lower to $2,500.30.

U.S. consumer price index data for July is due at 1230 GMT and expected to show month-on-month inflation accelerated to 0.2%, with the annual core slowing a tick to 3.2%. Retail sales data is scheduled for Thursday.

Gold might drop to $2,300 if CPI data doesn't align with expected rate cuts, but in the long term, gold is likely to rise as U.S. economy weakens enough for the Fed to cut rates significantly, said Kyle Rodda, a financial market analyst at Capital.com.

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