On Wednesday, gold prices kept steady near a 4-1/2-month high as the safe-haven metal benefited from a decline in U.S. Treasury yields and a weaker dollar.
Spot gold was steady at $1,899.11 per ounce by 0041 GMT, after hitting its highest since Jan.8 at $1,899.11 on Tuesday.
U.S. gold futures edged up 0.1% to $1,899.60 per ounce.
The dollar index was pinned near a 4-1/2-month low against its rivals, making gold cheaper for other currency holders.
Benchmark U.S. Treasury yields fell to a two-week low of 1.56% overnight, reducing the opportunity cost of holding non-interest bearing gold.
On Tuesday, the U.S. Federal Reserve Vice Chairman Richard Clarida said the central bank can contain inflation without derailing the economic recovery if it breaks out.
Even as they say more support is required to bolster the recovery and jobs, Fed policymakers have begun to admit they are closer to discussing when to withdraw some of their crisis support for the U.S. economy.
Some investors see gold as a hedge against the possibility that stimulus measures could lead to higher inflation.
Palladium rose 0.3% to $2,778.97 per ounce, silver was steady at $27.99 and platinum gained 0.8% to $1,200.69.