Gold rebounds as US dollar, global bond yields ease

Among other metals, spot silver slid 0.3% to $63.10 per ounce, platinum edged up 0.8% to $1,726.96 and palladium advanced 0.1% to $1,291.28.

"In the near term, bullion may struggle for a clear trajectory, pulled in competing directions as markets weigh lingering geopolitical friction against the Fed's evolving policy path," said Nikos Tzabouras, senior market analyst at Jefferies-owned Tradu.com.

"But the macro backdrop is gradually improving for bullion as price pressures ease and the case for a Fed hold strengthens. Gold is well-positioned to extend its recovery past the $4,500 threshold and escape bear market territory."

On the geopolitical front, oil prices hit a three-week high on Wednesday on Strait of Hormuz shipping uncertainty, after Trump said no talks were taking place with Iran and insisted the waterway was open, contradicting Iran's claim it remained shut.

Gold rebounded on Wednesday as the U.S. dollar weakened and global bond yields eased from multi-decade highs, while markets awaited minutes from the Federal Reserve's latest policy meeting for guidance on interest rates as inflation risks persist.

Spot gold gained 0.5% to $4,356.29 per ounce by 0908 GMT, while U.S. gold futures slipped 0.2% to $4,410.30.

Bullion declined about 2% on Tuesday after long-term borrowing costs from the U.S. to Germany and Japan hit their highest in decades on inflation concerns. The dollar softened as the bond selloff slowed on Wednesday, improving appetite for non-interest-bearing bullion.