Spot gold rose nearly 1% on Wednesday, approaching a 10-week high, as wagers on a Federal Reserve rate hike next month diminished. Investors are now awaiting the upcoming US inflation data to further gauge policy direction.

Spot gold gained 0.9% to $4,406.34 per ounce, while US gold futures for December rose 0.6% to $4,466.70.

On Tuesday, gold prices touched a 10-week peak but closed lower after encountering technical resistance near the 100-day moving average of approximately $4,387, marking the second negative close in the month.

Kelvin Wong, a senior market analyst at OANDA, stated, "The primary driver for gold is the market's reduced pricing of Fed rate hikes. From a technical perspective, gold's breakout above the $4,200 mark late last week has created a positive momentum feedback loop."

Last Friday, weaker-than-expected employment data propelled gold to its largest weekly gain since January. According to the CME FedWatch tool, traders now price a 50% probability of a September rate hike, down from 60% before the jobs report.

Lower interest rates typically benefit gold, as the metal yields no interest income.

The US Consumer Price Index (CPI) data, set to be released later on Wednesday, could further reshape rate expectations. Chicago Fed President Austan Goolsbee indicated he is more concerned about inflation being too high rather than labor market weakness.

Other precious metals also strengthened in tandem: spot silver rose 1.2% to $65.46 per ounce, platinum gained 0.6% to $1,754.10, and palladium increased 0.8% to $1,370.86.