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Gold prices on Wednesday held gains made in the previous session as the U.S. dollar weakened, but lacked impetus to push higher on increased odds of an interest rate hike by the Federal Reserve.

Spot gold was up 0.14 percent at $1,229.36 an ounce at 0610 GMT, after rising 0.67 percent in the previous session.

The dollar retreated from an 11-month high against a basket of currencies on Wednesday, taking a breather from a week-long rally driven by a rise in U.S. bond yields after Donald Trump won the presidential election.

The dollar index .DXY slipped about 0.2 percent to 99.989, easing from Tuesday's high of 100.26, the strongest level since last December. A move above 100.51 would take the index to its highest since April 2003.

With its rise on Tuesday, the dollar index had climbed 4.6 percent from a trough hit on Nov. 9, hoisted by a jump in Treasury yields as Trump's victory last week led the market to think that he and a Republican-controlled Congress would embark on fiscal spending to boost the economy.

Fed Governor Daniel Tarullo on Tuesday said Trump's election already may be pushing up interest rates and tightening financial markets, something the Fed will have to monitor as it decides how quickly to tighten monetary policy.

"With Fed officials' recent comments, talk of a rate rise will hardly inspire gold to go higher," said James Steel, chief metals analyst for HSBC Securities.

Reference: Reuters