Gold prices edge higher in European morning trade on Wednesday, but stayed near the lowest level in around five weeks as investors worried about future Federal Reserve rate hikes.

The precious metal is sensitive to moves in U.S. rates, which lift the opportunity cost of holding non-yielding assets such as bullion.

Comex gold futures were at $1,247.85 a troy ounce by 3:35AM ET (0735GMT), up $4.25, or around 0.3%. Gold prices notched a second-straight decline on Tuesday after falling to its lowest since May 17 at $1,242.40.