Gold prices held steady on Wednesday as traders awaited key U.S. economic indicators to gauge the Federal Reserve’s policy direction, while silver pulled back from a new record high.

Spot gold was steady at $4,207.60 per ounce at 0856 GMT, after falling more than 1% in the previous session. U.S. gold futures for December delivery were up 0.4% at $4,237.90 per ounce.

"(Gold) trades unchanged in early European hours, with attention on key U.S. data that could cement expectations for a metal-supportive December rate cut," said Ole Hansen, head of commodity strategy at Saxo Bank.

Investors are looking out for U.S. November ADP employment figures due at 1315 GMT, and the September Personal Consumption Expenditures (PCE) Index, delayed because of the U.S. government shutdown, due on Friday.

Weaker U.S. economic data and dovish signals from Fed officials have reinforced expectations of a rate cut at the central bank's December 9–10 meeting, with brokerages, including BofA and J.P. Morgan, projecting policy easing.

U.S. rate futures now price an 87% chance of a rate cut next week, according to CME's FedWatch tool.

Non-yielding gold tends to perform well in a low-interest-rate environment.

Meanwhile, silver fell 0.5% to $58.15/oz after climbing to a fresh record high of $58.94 earlier in the session.

Silver is supported by "a tight supply outlook, continued momentum buying and short covering following last Friday’s breakout above $54.50," Hansen said, adding that overbought conditions posed a near-term risk for silver bulls.

Silver, both a precious and industrial metal, has gained 101% this year, and has also been supported by its inclusion in a U.S. list of critical minerals. Gold has gained 60% this year.

Meanwhile, global shares were steadier on Wednesday, helped by an overnight rebound on Wall Street as a brief selloff in bond markets and cryptocurrencies abated.

Elsewhere, platinum gained 0.6% to $1,647.75, while palladium lost 0.5% to $1,455.34.