Gold prices rose on Wednesday, after the dollar weakened, as worries over rising inflation and fears that supply chain constraints would derail global economic growth boosted demand for the safe-haven metal.

Spot gold rose 0.5% to $1,778.06 per ounce by 10:22 a.m. ET. US gold futures for December delivery rose 0.4% to $1,778.00 per ounce.

Making gold more appealing for overseas buyers, the dollar index dipped as riskier currencies gained.

"There is a global concern on what is going on with supply crunches and the lack of action from the Federal Reserve. It seems like the Fed is behind the ball on inflation," said Bob Haberkorn, senior market strategist at RJO Futures.

"With supply chain and inflation issues, how will stocks continue to make new highs?" Haberkorn said, adding that "there is a flight to safety into gold that will go on for the next couple of months."

Fed Governor Christopher Waller said on Tuesday if inflation keeps rising at its current pace in the next few months, Fed policymakers may need to adopt "a more aggressive policy response" next year.

Gold firms as safe-haven demand counters pressure from US yields

Bullion is often considered an inflation hedge, though reduced stimulus and interest rate hikes push government bond yields up, raising the opportunity cost of holding non-yielding bullion.

Limiting bullion's gains, US benchmark 10-year Treasury yields firmed near five-month peak.

"For the last few weeks US Treasury yields have pushed higher as inflation concerns increase, yet gold has struggled to make any significant move one way or the other .... Gold is trading in a range between $1,720 and $1,820," said Michael Hewson, chief market analyst at CMC Markets U.K.

Elsewhere, spot palladium fell 2.1% to $2,053.51 per ounce. Spot platinum edged up 0.02% to $1,040.27 per ounce.

Spot silver rose 1.4% to $23.99 per ounce.