Gold is nearing to its highest level in 6 months on Wednesday, the appetite of purchasing the greenback is rising among investors, waiting for Fed's approach regarding the rate hikes that will be more evident post the release of the minutes today.

Gold is kicking off the year with a powerful beginning as the mounting fears of possible shrunk economy and the projected eased U.S. rate raise boosted the demand on the safe heavens excluding the greenback.

The U.S dollar took advantage of the still unclear vision of Fed's direction for the rates hikes and retrieved its gains.

Spot gold slipped 0.1% to $1,838.66 per ounce, while gold futures dropped 0.1% to $1,844.65 per ounce. The two main gauges started the year with an edge more than 1%.

The recession projections that could highly take place in 2023 made the greenback look less attractive for investors and enticed them to direct their purchase towards the yellow metal.

China recently eased its Covid-19 curbs by the end of 2022, leading to the surge of the infected cases which could be a major hinder in reviving the country's economy.