Following a series of dovish comments from Federal Reserve officials, gold prices surged on Wednesday, hitting almost seven-month high as investors raised their bets on an early shift by the central bank.

Spot gold edged up by 0.1% to $2,044.08 per ounce, meanwhile gold futures advanced by 0.2% to $2,044.20 per ounce.

The yellow metal gained from both the dollar's decline to almost four-month lows and the declining yields on US Treasury bonds. In Asian trade, the 10-year rate dropped to a two-month low.

The demand for gold as a safe haven remained strong this week despite caution ahead of several important economic readings from China and the United States. This was especially true as a slew of negative readings from the euro zone and Japan fueled worries about a global economic downturn.

Separate remarks made by Fed officials overnight suggested that the bank should exercise greater caution when holding interest rates higher for longer periods of time and that a decrease in inflation may cause the bank to loosen policy sooner than anticipated.

Gold saw significant increases during November, with the gold currently expected to gain more than 3% for the month due to the possibility of a change in the Fed's hawkish posture. Given that higher rates increase the opportunity cost of investing in the yellow metal, any prospective rate cuts by the Fed are expected to help the gold markets.