Gold edged higher during Asian trade on Wednesday, holding above the US$4,100 an ounce level as investors turned cautious ahead of the release of minutes from the United States Federal Reserve's latest policy meeting.
By 4:10 pm AEST (6:10 am GMT), spot gold was up 0.5% at US$4,126.00 per ounce, snapping a two-session losing streak after falling to a weekly low on Tuesday.
The U.S. dollar traded little changed as investors refrained from making large bets ahead of the June Federal Open Market Committee (FOMC) meeting minutes, which are expected to provide further insight into the central bank's policy outlook.
According to the CME Group FedWatch Tool, markets are currently pricing in more than an 80% probability that the Federal Reserve will deliver at least one 25-basis-point interest rate increase before the end of the year.
Fresh geopolitical tensions also remained in focus after the U.S. military launched a new wave of strikes against Iran in response to attacks on three commercial vessels in the Strait of Hormuz, threatening a fragile ceasefire between the two countries.
The renewed conflict prompted investors to price in additional geopolitical risk, supporting demand for traditional safe-haven assets while also underpinning the U.S. dollar's reserve currency appeal.
Meanwhile, Washington revoked a temporary licence that had allowed Iran to sell crude oil on international markets, helping lift oil prices and reviving concerns that higher energy costs could add to inflationary pressures.
