Market players largely took their cue from a firmer euro against the dollar to come in and boost gold. But disappointment over only mild physical demand this week, even at currently cheaper levels, limited the day's rise.
Benchmark December delivery gold on the New York Mercantile Exchange's COMEX division climbed $4, or 0.9 percent, to close at $464.60 an ounce, after patrolling a range from $460.20 to $465.50.
Prices scampered higher after struggling at the open and held on to end at the top of the day's band in moderate volume, said a broker at a futures commission merchant in New York.
"When we broke above the $463 level at midmorning, it was mostly dealer buying that caught the ring short," he said.
"There was some more short covering up to the highs, and other than that it was just a knee-jerk reaction to the previous two days, when we dropped about $15," he added.
A higher euro bolstered gold as the spread between the eurozone currency and the dollar tightened before the European Central Bank's monthly policy setting meeting on Thursday.
After Tuesday's market close, the Federal Reserve took the benchmark rate to 4 percent, increasing the yield attraction for the US currency.
That normally pressures gold because investors sometimes turn to the metal as a dollar alternative.
No ECB rate hike was expected this week, although it and also the US Fed are expected to increase rates next month.
Gold had lost 3 percent from late last week going into Wednesday's session on fund selling across the metals complex, taking it to its cheapest since mid-September, before dealer bargain hunting came in to offer support.
Analysts said gold was hovering at a pivotal price after a sharp pull-back early this week and traders are mulling further consolidation before it can revisit the 18-year high hit last month.
"Maybe we'll stay around the $460-465 area; possibly we'll move into the $450's. But I'd expect very good scale down support ahead of $450," said Bernard Hunter, a director of precious metals trading at ScotiaMocatta in Toronto.
"In the absence of any news that provides a shock to the marketplace, I'd look for a broader range of $455 up to $468-$469," he said.
December gold hit an 18-year high at $483.10 in October.
Estimated volume was 51,000 contracts, only half of Tuesday's official tally of 102,010 lots.
Open interest fell 8,871 lots to 334,470 contracts as of Tuesday, when new speculative short positions helped sink the price.
Spot gold was quoted at $462.70/463.50 an ounce late in New York, versus Tuesday's close at $459.50/0.25. Wednesday's late fix by London bullion dealers was at $460.80.
COMEX December silver rose 9.0 cents to end at $7.56 an ounce, after dealing from $7.43-7.58.
The market touched a one-month low Tuesday at $7.41.
Spot silver was up at $7.51/54 an ounce, from $7.43/46 previously. It fixed at $7.42.
On the board at NYMEX, January platinum settled at $941.10 an ounce, a gain of $12.70, after it fell to a five-week low of $916 previously.
Spot platinum traded at $933/936.
December palladium rose $5.25 to $228.65 an ounce. Spot palladium hit $222/226.