Gold prices were largely unchanged on Wednesday, as investors mostly shrugged off North Korea's latest missile launch, while looking ahead to comments from the head of the Federal Reserve and a batch of U.S. economic data for fresh clues on the likely trajectory of monetary policy.

Comex gold futures were at $1,295.71 a troy ounce by 3:15AM ET (0815GMT), little changed from the prior session's close. It touched its best level since Oct. 16 at $1,299.00 at the start of this week.

Gold prices notched a minor gain on Tuesday as investors found little in Federal Reserve Governor Jerome Powell’s Senate Banking Committee confirmation hearing to sway expectations for U.S. interest-rate policy.

North Korea on Wednesday local time launched a likely intercontinental ballistic missile that landed in the Sea of Japan, according to the Pentagon.

The launch, Pyongyang's first since Sept. 15, came after the U.S. classified North Korea as a country that supported terrorism on Nov. 20. The hermit state later boasted through local media that its new ICBM was capable of reaching the U.S.

Despite that, most markets shrugged off the news, with gold failing to draw safe-haven support.

Looking ahead, outgoing Federal Reserve Chair Janet Yellen is slated to testify on the economic outlook before the Congressional Joint Economic Committee later in the day, which could provide market participants with an insight into the progress of the economy.

Investors are expected to closely parse Yellen’s remarks after she warned that the trend of low inflation limits the potential of further rate hikes.

The Federal Reserve’s Beige Book, a report that includes anecdotal evidence on the health of the economy from 12 regions, will offer additional clues on the path of U.S. interest rate hikes and the progress of the economy.

On the data front, Wednesday's calendar features the second estimate of GDP growth for the third quarter, expected to show a small upward revision from 3.0% to 3.2%. A report on pending home sales is also on the agenda.

The U.S. central bank is scheduled to hold its final policy meeting of the year on Dec. 12-13, with interest rate futures pricing in a 100% chance of a rate hike at that meeting, according to Investing.com's Fed Rate Monitor Tool.

However, markets appeared doubtful over the central bank's ability to raise rates as much as it would like next year due to concern over the sluggish inflation outlook.

Gold is highly sensitive to rising rates, which lift the opportunity cost of holding non-yielding assets such as bullion, while boosting the dollar, in which it is priced.

Meanwhile, U.S. tax reform stayed in focus after the Senate Budget Committee approved the Republican tax bill, a crucial step toward a vote in the full chamber later this week.

Senate Republicans, who hold 52 seats, can only afford to lose two votes to still pass the bill under special budget rules.