Gold prices rose slightly on Wednesday as U.S. Treasury yields fell as investors awaited more U.S. economic data to gauge how many interest rate cuts the Federal Reserve is likely to make in the near term.
Spot gold rose 0.3 percent to $2,667.97 per ounce by 0217 GMT, $17 below a record peak hit last month. U.S. gold futures rose 0.2 percent to $2,683.80.
Yields on 10-year Treasury notes fell for a third straight session, making the non-yielding metal more attractive.
The game changer for gold prices is the easing of monetary policy in the United States, as it paves the way for investment demand, Soni Kumari, a commodities analyst at ANZ, told Reuters.
She added that uncertainty surrounding the US elections and geopolitical tensions will also support gold in the future.
Investors are awaiting data on retail sales, industrial output and weekly jobless claims in the United States, due on Thursday, for fresh clues on the monetary easing cycle.
Traders are 97.2 percent likely to cut rates by 25 basis points when the U.S. central bank makes its policy decision in November, according to the CME Group's FedWatch tool.
On the other hand, Israeli Prime Minister Benjamin Netanyahu said that he informed French President Emmanuel Macron that he would not agree to any ceasefire agreement that does not include preventing the Lebanese Hezbollah group from rearming.
As for other precious metals, silver rose in spot transactions by 0.3 percent to $31.56, platinum rose by 0.6 percent to $990.49, and palladium rose by 0.2 percent to $1011.47.
