Gold prices rose on Wednesday, boosted by a weaker dollar and continued geopolitical tensions on multiple fronts, keeping investors on guard amid a range-bound market awaiting fresh catalysts.

Spot gold rose 0.9% to $3,381.32 an ounce, as of 10:43 a.m. ET (1143 GMT). U.S. gold futures were up at $3,406.80.

The U.S. dollar index (.DXY), fell 0.5%, making bullion cheaper for buyers holding other currencies.

"There's a fair amount of geopolitical uncertainty with Russia-Ukraine, Iran, Syria and China, which is encouraging people to buy gold. Market sentiment remains fairly high, and while traders may not expect gold to rise that quickly, there's still a lot of upside," said Daniel Pavilonis, senior market strategist at RJO Futures.

Russia is concerned about the escalation of tensions around Iran and the risk of the situation escalating into a full-scale confrontation, Russian Foreign Ministry spokeswoman Maria Zakharova said.

However, "the market is currently unstable and we need some bigger signals, meaning geopolitical escalation, which would pave the way for buying more gold as an inflation hedge," Pavilonis added.

US President Donald Trump on Wednesday said his Chinese counterpart Xi Jinping was tough and "very difficult to negotiate with," just days after accusing China of violating an agreement to lift tariffs and trade restrictions.

In addition, Washington doubled tariffs on steel and aluminum imports and urged trading partners to submit their "best offers" to avoid more import levies starting in early July.

Data on Wednesday showed US private employers added the fewest workers in more than two years in May, although this may not reflect a gradual easing amid uncertainty over the Trump administration's tariffs.

All eyes are now on Friday's US nonfarm payrolls report, which is expected to provide key insights into the direction of Federal Reserve policy. Fed officials have maintained a cautious stance amid ongoing trade tensions and economic uncertainty.

Gold, a safe haven during times of political and economic uncertainty, tends to thrive in a low-interest-rate environment.

Elsewhere, spot silver was steady at $34.50 an ounce, platinum rose 1.3% to $1,088.31 and palladium fell 0.9% to $1,000.94. (alg)

Source: Reuters