Gold extended its advance on Wednesday, climbing 1.0% to settle at $4,397.47 per ounce, buoyed by a declining U.S. dollar and escalating Middle East hostilities, though the rally faced headwinds from growing anticipation of Federal Reserve monetary tightening.
Gold futures registered a more modest 0.1% increase to $4,441.86 per ounce during early market hours.
The U.S. dollar index remained largely unchanged at 98.77, while the recent appreciation of the Japanese yen applied modest downward pressure on the greenback.
The dollar's softness and heightened conflict risk in the Middle East provided supportive backdrop for the yellow metal, even as traders weighed the prospect of tighter Fed policy ahead.
