Gold was steady after a gain as the US-Iran ceasefire continued to hold despite reports of a cargo vessel being targeted, easing fears of an escalation that would fuel inflation risks.

Bullion traded around $4,550 an ounce, after rising 0.8% on Tuesday. The US has downplayed the prospect of a return to active war with Iran, but reports a cargo vessel was hit by an unknown projectile the day after clashes involving ships in the Strait of Hormuz signaled a continuing simmering of tensions.