Gold settled under $1,310 an ounce on Wednesday, after the minutes of the Federal Reserve's Sept. 17-18 meeting showed their decision not to taper was a 'close call' for several members.
The minutes revealed that top officials were concerned that their decision to keep buying $85 billion in bonds each month could harm the effectiveness of communications with investors who largely expected a reduction.
The dollar rose from an eight-month low against major currencies as news that Yellen will be nominated as the next Fed chief.
Yellen is expected to continue the Fed's asset-buying program, which has pressured the dollar. Still, the news brought some relief to investors who have been on edge because of the budget deadlock in Washington.
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