Gold price edges higher on Fed officials' dovish remarks; eyes US PPI and FOMC minutes

• Gold price trades with modest intraday gains during the early European session on Wednesday.

• Reduced bets for more interest rate hikes by the Fed and geopolitical tensions lend some support.

• Traders look for cues about the Fed’s next policy move before placing aggressive directional bets.

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Gold price (XAU/USD) seesawed between tepid gains/minor losses on Tuesday and consolidated its strong recovery gains from the $1,810 area, or a seven-month low touched last week. The precious metal, however, manages to hold above the $1,850 level and trades with a mild positive bias through the early part of the European session on Wednesday.

Bulls, however, might refrain from placing aggressive bets around the Gold price and prefer to wait for fresh cues about the Federal Reserve's (Fed) future rate-hike path. The United States (US) Nonfarm Payrolls (NFP) report released last Friday showed that wage growth remained moderate in September and eased inflationary concerns. This, along with recent dovish remarks by several Fed officials, supports prospects for an eventual shift in the central bank's policy stance.

Furthermore, the Israel-Gaza conflict is seen lending some support to the safe-haven Gold price. The markets, meanwhile, are still pricing in the possibility of at least one rate hike by the end of this year. This, along with a generally positive risk tone and a modest US Dollar (USD) uptick, might cap further gains for the precious metal. Wednesday's release of the US Producer Price Index (PPI) and the FOMC minutes might provide some impetus ahead of the US CPI on Thursday.