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Gold held its gains from the previous session on Wednesday as economic uncertainty countered strong payrolls data, while investors positioned for the Federal Reserve's interest rate decision.

Spot gold was little changed at $2,015.89 per ounce by 9:50 a.m. EDT (1350 GMT), after earlier touching its highest since April 14.

U.S. gold futures rose 0.1% to $2,024.90.

Prices eased briefly after data showing U.S. private employers boosted hiring in April, but soon steadied.

The Fed's rate decision is expected at 2:00 p.m. EDT, with markets pricing in an 83% chance of a 25-basis-point hike.

"We're back and forth all morning about what is (Fed Chair Jerome) Powell going to say," said Bob Haberkorn, senior market strategist at RJO Futures.

If they hint at a pause to rate hikes, gold should rally significantly, or if they indicate hikes are still coming, gold will probably he sold off, Haberkorn added.

The central bank could also signal a pause in its 14-month tightening cycle, as policymakers balance the need to slow inflation against risks ranging from bank failures to the possibility of a U.S. debt default as soon as next month.

Non-yielding bullion, which is a customary safe haven against inflation and economic uncertainty, draws lower demand when higher interest rates boost returns on competing assets with yields.

Prices gained 1% in April as the U.S. banking crisis spurred a flight to safety.

Gold is caught between growing anxiety over the U.S. banking crisis and uncertainty over the Fed's stance, which is capping the upside, ActivTrades senior analyst Ricardo Evangelista said.

However, difficulties surrounding a bipartisan agreement over the debt ceiling has the potential to offer further support to gold, Evangelista added.

Silver fell 0.7% to $25.22 per ounce, platinum dropped 0.7% to $1,057.89, while palladium rose 1.3% to $1,447.80.