Gold prices edged higher on Wednesday as both the US dollar and Treasury yields retreated. Spot gold rose 0.4% to trade at $1,903 per ounce.
The dollar index dipped 0.1% amid lower yields on US government bonds. Gold prices have moved inversely to the dollar and yields in recent months.
Investors continued to monitor developments around the Federal Reserve's monetary policy stance. Minutes from the July meeting reflected divisions among policymakers on future rate hikes.
Attention now turns to this week's Jackson Hole symposium for any hints from Fed Chair Jerome Powell on the outlook. The central bank's progress toward lowering inflation will remain a key determinant for gold.
However, bullion could see renewed upside once interest rate increases conclude. Rate cuts may follow next year if price pressures continue to recede.
Gold is seen as an inflation hedge and safe-haven asset during economic uncertainty. Its appeal benefits from a weaker dollar and lower opportunity cost as yields fall.
Silver also gained ground, climbing 1.2% to $23.68 per ounce. Platinum inched 0.3% higher to $927.53 amid the softer greenback and bond yields. Precious metals drew support as the recent rise in these markets stalled.
