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Gold turned positive on Wednesday as risk-off sentiment gripped financial markets amid the possibility of more Western sanctions on Russia, although aggressive U.S. rate hike bets kept bullion near a one-week low.

Spot gold XAU= rose 0.3% to $1,928.96 per ounce by 1005 GMT. U.S. gold futures GCv1 were 0.3% higher at $1,932.40.

Gold touched its lowest level since March 29 earlier, after Federal Reserve Governor Lael Brainard spooked investors about potential aggressive actions by the central bank to control inflation. (Full Story)

Brainard's remarks propelled the U.S. dollar and Treasury yields to multi-year highs, dimming gold's appeal. USD/ US/

"Gold could dip back into sub-$1,900 territory if the FOMC minutes or the Fed speak in the coming days offer more hawkish clues," said Han Tan, chief market analyst at Exinity.

Rising U.S. interest rates and higher yields increase the opportunity cost of holding non-yielding bullion, which is also used as a hedge against rising inflation.

Investors were awaiting the release of minutes from the Fed's last policy meeting out at 1800 GMT on Wednesday.

"However, further sanctions imposed on Russia that ramp up inflationary pressures and further darkens the global economic outlook should offer notable support for spot gold," Tan added.

Global share prices eased as the United States and its allies prepared new sanctions on Moscow over civilian killings which Ukraine described as "war crimes", while Russian artillery pounded Ukrainian cities of Mariupol and Kharkiv. (Full Story) MKTS/GLOB

"There's still a number of things that could trigger another rally in gold. Inflation continuing to rise beyond current expectations, Ukraine/Russia talks collapsing or a recession," said Craig Erlam, senior market analyst at OANDA.

Among other precious metals, spot silver XAG= was up 0.2% at $24.37 per ounce, platinum XPT= eased 0.1% to $967.56 and palladium XPD= rose 0.9% to $2,257.27.