Gold prices rose on Wednesday to hover near a more-than-one -week high on dovish Fed talk and China stimulus hopes.
Spot gold rose 0.6 percent to $1,870.74 per ounce, while U.S. gold futures were up half a percent at $1,884.20.
Treasury yields retreated from their 2007 highs scaled last week and the dollar hovered near a two-week trough against a basket of currencies, as dovish comments from several Federal Reserve officials prompted traders to pare interest-rate expectations.
Atlanta Fed Bank President Raphael Bostic said on Tuesday the central bank need not raise borrowing costs any further.
Minneapolis Fed President Neel Kashkari made similar remarks and voiced his uncertainty about the impact of the recent increase in the 10-year Treasury yield.
Investors now look ahead to the release of minutes of the Fed's September policy meeting later in the day and U.S. inflation data due on Thursday for further clues on the interest rate outlook.
Meanwhile, media reports suggest that China is considering raising its budget deficit for 2023 to help the economy meet the government's annual growth target.
