Gold prices rose slightly in early trade on Wednesday, as investors looked for bargains after sharp declines in the previous session, while focus shifted to U.S. inflation data that could shed more light on the path of monetary policy.

Update prices

Spot gold was up 0.5 percent at $2,610.99 an ounce by 0437 GMT, after hitting its lowest since Sept. 20 on Tuesday. U.S. gold futures were up 0.4 percent at $2,617.20.

According to the CME FedWatch tool, traders are now 58.7 percent likely to cut interest rates by 25 basis points at next month's Fed meeting, compared with 77.3 percent a week ago.