Gold prices edged up on Wednesday, taking support from a weaker US dollar and lower Treasury yields, while investors awaited US consumer inflation data that could offer clues on how soon the Federal Reserve can cut interest rates.

Spot gold rose 0.2% to $2,363.23 per ounce, as of 1155 GMT. U.S. gold futures rose 0.4% to $2,369.00.

The U.S. consumer price index data is due at 1230 GMT. Core inflation in April is seen rising 0.3% month-over-month, down from 0.4% the prior month, based on a Reuters poll.

"The focus of the financial markets is firmly set on the US consumer price index after yesterday's producer price data, seemed to have taken some of the heat off the US dollar and treasury yields, and offered support to gold," said Ricardo Evangelista, senior analyst at ActivTrades.

The dollar fell 0.2% against a basket of currencies to hit a nearly two week low, making gold less expensive for other currency holders. Benchmark 10-year Treasury yields hit a more than one month low.

Gold prices rose nearly 1% on Tuesday even as data showed that U.S. producer prices increased more than expected in April. Fed Chair Jerome Powell said he expects U.S. inflation to continue declining through 2024 and noted it was unlikely the central bank would have to raise interest rates again.

"If the CPI starts to come down a little bit, it will be positive for gold as it is in a fantastic position to capitalize on that dynamic considering its resilience to this point," said Kyle Rodda, a financial market analyst at Capital.com.

Last week's lacklustre labour market data has increased expectations for rate reductions by September.

Spot silver rose 0.7% to $28.78 per ounce, palladium gained 1.1% to $988.19 and platinum climbed 1.4% to $1,045.70, hitting a near one-year high.

(Reporting by Harshit Verma and Sherin Elizabeth Varghese in Bengaluru; Editing by Jane Merriman and Louise Heavens)