Gold prices steadied near an over nine-month low on Wednesday, as investors cautiously awaited U.S. inflation data for cues on the road ahead for the Federal Reserve’s monetary policy.

Spot gold was 0.3% higher at $1,730.13 per ounce, after touching $1,721.98 earlier in the session, its weakest since late-September. U.S. gold futures gained 0.2% to $1,728.6.

“Traders are teetering on the edge of their seats ahead of U.S. CPI,” and currency and gold investors are probably executing on a need-only basis, said Stephen Innes, managing partner at SPI Asset Management.

The U.S. Labor Department’s June Consumer Price Index (CPI), due later in the day, is expected to have accelerated on both a monthly and annual basis, by 1.1% and 8.8%, respectively.

Barring a major surprise, the CPI data could coalesce investors’ expectations for a 75-basis-point interest rate hike by the Fed later this month, as the U.S. central bank seeks to rein in inflation.

With the market convinced the Fed will go with the jumbo hike at its July meeting, it feels like long positions in gold are still swimming upstream, but data showing inflation has peaked could mitigate rate-hike pressure and gold should catch a small flyer, Innes said.

Although gold is seen as an inflation hedge, higher rates draw investors away from zero-yield bullion.

The dollar firmed near 20-year highs, continuing to make greenback-priced gold less attractive for buyers holding other currencies.

Benchmark U.S. 10-year Treasury yields were steady.

Gold will rally from time to time as investors and traders try to pick the bottom, but the market will likely continue to stay flat/trend lower with a strengthening U.S. dollar, said Michael Langford, director at corporate advisory AirGuide.