Gold prices climbed on Wednesday on softer U.S. Treasury yields, but lacked impetus to move higher as bullion's safe-haven demand showed signs of fatigue after global leaders sought to prevent the Israel-Hamas war from spreading.

FUNDAMENTALS * Spot gold gained 0.2% to $1,974.29 per ounce by 0104 GMT, having declined in the previous two sessions and trading below five-month highs hit last week. U.S. gold futures were steady at $1,985.40.

* Investors are keeping a close watch on the war in the Middle East as world leaders pushed for either a pause or ceasefire in fighting between Israel and Hamas in the Gaza Strip so that humanitarian aid could be delivered to besieged Palestinian civilians.

* The benchmark U.S. 10-year Treasury yields inched lower as investors bought into a recent sell-off amid concerns about the economic impact of higher borrowing costs.

* U.S. business activity ticked higher in October while output in the euro zone took a surprise turn for the worse, surveys showed on Tuesday, underscoring the diverging path for central bankers in the two regions and fanning fears the bloc may slip into recession.

* Investors are now eagerly awaiting the release of the U.S. GDP numbers for the third quarter on Thursday and the U.S. PCE price index on Friday.

* South Africa's Anglo American Platinum on Tuesday said its refined platinum group metal (PGM) output declined 9% during the third quarter, due to disrupted water supplies to its processing facilities and lower concentrate production.

* Spot silver rose 0.3% to $23 an ounce, platinum added 0.2% to $886.08 and palladium advanced 0.7% to $1,127.52.

DATA/EVENTS (GMT) 0500 Japan Chain Store Sales YY Sept 0800 Germany Ifo Business Climate New Oct 0800 Germany Ifo Curr Conditions New Oct 0800 Germany Ifo Expectations New Oct 1000 France Unemp Class-A SA Sept 1400 US New Homes Sales-Units Sept (Reporting by Swati Verma and Sherin Elizabeth Varghese in Bengaluru; Editing by Sherry Jacob-Phillips)