Gold edged lower on Wednesday, though the downside remained capped amidst economic uncertainties.
Spot gold slipped 0.3 percent to $1,897.31 per ounce, while U.S. gold futures were down half a percent at $1,901.50.
The dollar index was up slightly in European trade and U.S. Treasury yields climbed, as investors kept a close eye on the developments surrounding the SVB crisis and awaited more U.S. economic data for cues on the Federal Reserve's monetary policy path.
Overnight data showed U.S. consumer price inflation eased slightly last month, spurring hopes of a smaller rate hike at the conclusion of next week's FOMC meeting.
U.S. consumer inflation eased to 0.4 percent in February from 0.5 percent in January, raising the odds of a 25 basis-point hike by the Fed.
Elsewhere, a slew of economic data out of China confirmed that the recovery was well on track.
Chinese retail sales rebounded in the first two months of 2023 and fixed investment grew at a much faster-than-expected clip, while factory activity expanded slightly slower than expected and the jobless rate increased, according to data by the National Bureau of Statistics.
Data from Europe showed Eurozone industrial output rose more than expected in January, suggesting that the manufacturing sector recovery is gaining traction.
U.K. Chancellor of the Exchequer Jeremy Hunt is set to deliver the Spring Budget 2023 at 8.30 am ET.
U.S. retail sales and PPI for February, as well as business inventories data for January and NAHB housing market index for March will be released in the New York session.
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