Gold prices extended gains on Wednesday, as the dollar dipped after U.S. core inflation data came in softer than expected, abating inflation pressures and rekindling expectations that the Federal Reserve's easing cycle may not be over yet.

US consumer prices showed no signs of cooling in December amid higher costs for energy goods — pointing to still elevated inflation that aligns with the Federal Reserve’s projections for fewer interest rate cuts this year.

Annual inflation ticked up for a third straight month in December as food and energy costs rose, the CPI report showed. Here's how it could affect Fed rate cuts.

Gold prices firmed near one-month highs hit earlier on Thursday after a softer-than-expected core U.S. inflation print increased chances of two Federal Reserve rate cuts this year, with the first likely in June.