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Gold prices were subdued on Wednesday as investors waited for a key U.S. inflation reading due this week, which could offer more clarity on the timing of the Federal Reserve's first interest rate cut this year.

Spot gold eased 0.3% to $2,312.90 per ounce by 0720 GMT. U.S. gold futures fell 0.3% to $2,324.80.

The dollar rose 0.2% against its rivals, making gold more expensive for other currency holders, while benchmark 10-year yields also edged higher. [USD][/US/]

"Higher Treasury yields and a firmer U.S. dollar overnight on the back of hawkish Fed comments have driven some weakness in gold prices this morning, as the call for a quicker policy easing failed to find much validation from policymakers," said IG market strategist Yeap Jun Rong.

Fed Governor Michelle Bowman on Tuesday reiterated her view that holding the policy rate steady "for some time" will probably be enough to bring inflation under control, but also repeated her willingness to raise borrowing costs if needed.

Meanwhile, Fed Governor Lisa Cook said "at some point" it will be time to cut interest rates.

The U.S. first-quarter gross domestic product estimates are due on Thursday, and the personal consumption expenditures (PCE) price index report on Friday.

"The risks come with any upside surprise in inflation, which could trigger more uncertainty around Fed policies and may see further unwinding in the yellow metal," IG's Jun Rong added.

Higher interest rates increase the opportunity cost of holding non-yielding bullion.

"Dips in the gold price remain relatively shallow courtesy of buyers stepping in from the sidelines on price retreats," Tim Waterer, chief market analyst at KCM Trade, said in a note.

Waterer said the $2,368 level needed to be breached for gold to surpass the highs from last week.

Spot silver was unchanged at $28.90, platinum climbed 1.2% to $993.10, while palladium lost 0.4% to $944.00.f