Gold rose to a one-week high on Wednesday on market hopes for further fiscal support for the U.S. economy and expectations that the U.S. Federal Reserve will keep a lid on interest rates.

Spot gold was up 0.5pc at $1,862.30 an ounce by 1023 GMT after touching its highest since Dec. 9 at $1,865.14. U.S. gold futures rose 0.6pc to $1,866.20.

"If we get a Brexit deal over the line, a stimulus deal in the U.S. and the monetary stimulus package from the Fed this week, which is extremely possible, that could put gold on a more positive trajectory and take some volatility out of the markets going into year-end," said OANDA analyst Craig Erlam.

The European Commission President said there had been progress on a trade deal with Britain as the end of the Brexit transition period.

In the United States, meanwhile, congressional leaders were optimistic on Tuesday about ending a months-long standoff on stimulus to contend with the coronavirus crisis.

Also on investors' radar is the Fed's final policy statement of the year at 1900 GMT.

The central bank is widely expected to keep interest rates pinned near zero.

Non-yielding gold has risen 22pc this year as unprecedented stimulus has been unleashed globally.

"But if (the Fed) fail to deliver, we could be seeing gold moving back towards November lows," OANDA's Erlam said.

Capping bullion's gains, global equities rose on hopes of vaccine rollouts across the world.

In other precious metals, silver gained 2.6pc to $25.12 an ounce. Silver has outshone gold of late, given the improving prospects of industrial demand into next year.

Among the autocatalysts, platinum was up 0.9pc at $1,046.09 an ounce, having hit a more than one-week high of $1,045, while palladium rose 0.9pc to $2,338.50.

Expectations of an economic rebound next year should support platinum, said Harshal Barot, a senior research consultant for South Asia at Metals Focus.