Gold rose 0.2% to $4,342.33 an ounce in early Asian trade, recovering part of Tuesday's nearly 2% slide as U.S. Treasury yields eased and investors awaited the Federal Reserve's latest policy minutes. U.S. gold futures for December delivery fell 0.6% to $4,396.30. Markets were also watching the Middle East after U.S. President Donald Trump said no talks were taking place with Iran and that the Strait of Hormuz was open, remarks that contrasted with Iran's position and helped push oil prices higher. Higher energy costs may strengthen the case for tighter policy even after softer U.S. inflation, unexpected employment losses and weak July retail sales; traders are pricing a 65% chance of unchanged Fed rates and a 35% chance of a September hike, according to CME FedWatch.