Gold slipped in thin trading as a stronger dollar and positioning before US inflation data limited upside.

Gold moved back toward $4,900 per ounce on Wednesday, trimming part of its recent two-day slide as fresh buying interest emerged and the Federal Reserve’s policy path came back into focus.

Germany’s economic expectations softened in February as the ZEW Indicator of Economic Sentiment eased to 58.3, down from January’s more than four-year high of 59.6.