Governor Christopher Waller raised the possibility of a 50-basis-point hike, while other Fed officials signaled support for tighter policy. December hike expectations jumped to 91% from 84%, driving the dollar higher.

Gold slipped below $4,050 after losing nearly 3% in the previous session. Stronger US inflation and the prospect of more aggressive Fed tightening weighed on bullion, with higher interest rate expectations strengthening the dollar and reducing gold's appeal.

Brent steadied above $92 a barrel as Trump suggested further strikes on Iran might be unnecessary. Congressional Democrats are also considering using the upcoming government funding deadline to push for an end to the conflict, raising hopes of a diplomatic resolution.

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