Gold prices hit over one-week high on Wednesday amid investor concerns that
Italy's new budget plans could meet resistance in Brussels.
Concerns persist about Italy's plans to tackle budgetary deficit despite reports suggesting that the country plans to reduce budget deficit by 2.0 percent in 2021.
The Italian newspaper Corriere della Sera reported that the government estimates a budget deficit of 2.4 percent of GDP for 2019, and then slash it to 2.2 percent for 2020.
Spot gold was up 0.13 percent at $1,203.99 after having touched $1208.31 earlier in the day. The precious metal jumped 1.3 percent on Tuesday to post its biggest single-day percentage gain since Aug. 24. U.S. gold futures were marginally higher at $1,207.70 an ounce.
The dollar index slipped against a basket of six major currencies after Federal Reserve Chairman Jerome Powell maintained the Fed's economic forecast and said he sees no need to drop the central bank's current gradual approach to raising interest rates.
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