Washington:  Gold prices moved higher on Wednesday after falling to a one week low, as investors turned cautious ahead of the release of minutes from the US Federal Reserve’s latest policy meeting.

Spot gold rose to about 4,929 dollars per ounce, while US gold futures climbed to around 4,949 dollars. The metal had slipped earlier in the week due to a stronger US dollar and easing geopolitical concerns, but buyers returned to the market to take advantage of lower prices.

Investors are closely watching the Federal Reserve minutes for clues on the future path of interest rates. Gold typically benefits when interest rates fall because it does not pay interest, making it more attractive when borrowing costs decline. Markets currently expect the Fed could begin cutting rates by mid year if inflation continues to ease.

Recent strength in the US dollar had weighed on gold, as a stronger currency makes the metal more expensive for buyers using other currencies. At the same time, trading activity has remained thin in parts of Asia due to holiday closures, limiting sharp price moves.

Geopolitical developments continue to influence demand for gold as a safe haven asset. Ongoing diplomatic efforts involving US Iran nuclear discussions and talks related to the Russia Ukraine conflict remain key factors that investors are monitoring.

Other precious metals showed mixed movement. Silver declined, while platinum and palladium recorded gains during the session.

Despite short term volatility, analysts say gold remains supported by central bank purchases, global economic uncertainty and expectations of future interest rate cuts. Prices are expected to remain sensitive to inflation data and policy signals from the Federal Reserve in the coming weeks.