Gold prices buoyed by bargain hunters

Gold prices inched higher on Wednesday as a slight pullback in U.S. bond yields and bargain-hunting underpinned the market, although a stronger dollar and aggressive interest rate hike fears limited gains, reports Reuters.

Spot gold edged up 0.1% to $1,702.59 per ounce by 1207 GMT, having dropped to its lowest since Sept. 1 at $1,690.10.

U.S. gold futures were little changed at $1,713.30.

There might be some buying activity below $1,700, but as long as the U.S. Federal Reserve sticks to its hawkish tone, expect gold prices to fall further, said UBS analyst Giovanni Staunovo.

The U.S. Federal Reserve too is largely expected to deliver a 75 basis point rate increase later this month.