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Gold resumed its uptick on Wednesday after a knee-jerk retreat immediately after the release of U.S. inflation data, as the dollar slipped with investors latching on to a slight cooling of consumer prices.

Spot gold rose 1% to $1,856.63 per ounce by 9:50 a.m. EDT (1350 GMT). U.S. gold futures gained 0.5% to $1,850.60.

U.S. consumer price growth slowed in April as gasoline prices eased off record highs, suggesting inflation has probably peaked, though it is likely to stay hot for a while and keep the Federal Reserve's foot on the brakes to cool demand.

Helping gold advance, the dollar index, which initially strengthened post the CPI data, edged back down about 0.3%. [USD/] [US/]

"The market saw the print and went 'SELL, SELL, SELL.' But gold has since bounced back with the thinking that the data is higher than expected, but not horrifying," said Tai Wong, an independent metals trader in New York.

"The Fed won't get more hawkish with this report, but definitely won't ease off either. But the sentiment (in gold) might be close to max bearish at the moment, which is why we could get a significant rebound"

U.S. central bank officials on Tuesday fortified their arguments for the swiftest series of interest rate hikes since at least the 1990s to combat inflation.

Although gold is considered a safe haven from inflation, rising U.S. interest rates increase the opportunity cost of holding bullion, while boosting the dollar, the currency in which gold is priced.

"But overall, gold hasn't been a bad investment. It's been holding a fairly tight range and I'd much rather own gold than things like the NASDAQ, or Bitcoin," said Phillip Streible, chief market strategist at Blue Line Futures in Chicago.

Spot silver gained 3.3% to $21.94 per ounce, platinum climbed 2.6% to $989.08, while palladium eased 0.3% to $2,059.99.