Gold prices rose on Wednesday, as a subdued dollar outweighed pressure from elevated U.S. bond yields and lingering fears over earlier-than-expected interest rates hikes.

Spot gold rose 0.4% to $1,775.21 per ounce by 0733 GMT. The metal rose as much as 1.2% on Tuesday before giving up most of those gains as Treasury yields rallied. U.S. gold futures gained 0.3% to $1,776.20.

On Wednesday, U.S. benchmark 10-year Treasury yields were close to their highest since May 20, raising the opportunity cost of holding non-yielding bullion.

But offsetting higher yields, the dollar index was little changed and not far from the Tuesday's close which was its lowest level in nearly a week. A weaker dollar makes bullion cheaper for buyers holding other currencies. 

"Gold continues to hang in there, but the writing is on the wall and as soon as the Fed makes a more hawkish pivot, gold could ignore higher inflation and trend lower," said Stephen Innes, managing partner at SPI Asset Management.

If inflation keeps rising at its current pace in the next few months, Fed policymakers may need to adopt "a more aggressive policy response" next year, Fed Governor Christopher Waller said on Tuesday. 

Though persistent inflation would be a greater risk for the U.S. economy over the coming year, a majority of economists in a Reuters poll expect the Federal Reserve to wait until 2023 before raising interest rates. 

Gold is often considered an inflation hedge, though reduced stimulus and interest rate hikes push government bond yields up.

ANZ analysts said in a note that although strong risk appetite weighed on bullion demand, retail investment remained strong and physical offtake was robust during the festival season, supporting gold.

Elsewhere, platinum rose 0.4% to $1,044.51 per ounce while palladium gained 0.2% to $2,101.17.

"Platinum looks better positioned than palladium due to its range of consumption drivers - jewellery and industrial," ANZ said.

Spot silver rose 0.8% to $23.84 an ounce.

(Reporting by Nakul Iyer and Seher Dareen in Bengaluru; Editing by Subhranshu Sahu, Krishna Chandra Eluri and Louise Heavens) ((; Within U.S. +1 646 223 8780, Outside U.S. +91 80 6749 0417; Reuters Messaging: