Gold prices were little changed in early deals on Wednesday, as investors looked ahead to U.S. inflation data to gauge how it will impact the Federal Reserve's view on monetary policy in the months ahead.

The Commerce Department will publish October inflation figures at 8:30AM ET (1330GMT). Market analysts expect consumer prices to inch up 0.1%, while core inflation is forecast to rise 0.2%.

At the same time, the Commerce Department will also publish data on retail sales for October. The consensus forecast is that the report will show retail sales increased 0.1% last month. Core sales are forecast to gain 0.2%.

The Fed is scheduled to hold its final policy meeting of the year on Dec. 12-13, with interest rate futures pricing in a 100% chance of a rate hike at that meeting, according to Investing.com's Fed Rate Monitor Tool.

Comex gold futures were nearly unchanged at $1,282.75 a troy ounce by 3:00AM ET (0800GMT).

On Tuesday, gold touched a session low of $1,270.59, its lowest level since Nov. 6, before recovering to gain about 0.3% as a key U.S. dollar benchmark index dropped to its lowest level in almost three weeks.

A weaker dollar boosts gold as the falling currency makes the dollar-priced bullion more attractive to investors using another currency.

Uncertainty over the outlook for U.S. tax reform also supported the precious metal’s move higher. U.S. Senate Republicans on Tuesday said their tax plan will involve the repeal of the Obamacare individual mandate that requires most Americans to have some form of health coverage.

Markets are concerned about whether or not the tax plans can be passed before the year ends. Republicans had initially hoped to hold a final vote on the bill by Thanksgiving next week, but analysts expressed some doubt at the timeline.