Gold was steady in the mid-North American session on Thursday after hitting an intraday low of $2,635 amid heightened concerns over the Israel-Iran conflict and a strengthening US dollar.
In addition, bets that the Federal Reserve (Fed) will ease its policy more aggressively at the end of the year will provide support for gold's position.
At 9.50am, the price of gold was at $2,658, up a slight 0.07% since it opened at the start of the Asian session on Friday.
Wall Street traded lower amid heightened geopolitical risks with market sentiment remaining gloomy as Israel advanced its troops into Lebanon despite receiving a significant missile attack by Iran on Tuesday.
Meanwhile, US President Joe Biden publicly commented that he discussed attacking Iran's oil facilities with Israeli officials. The news prompted investors to push the yellow metal higher towards $2,650.
Atlanta Fed official Raphael Bostic noted that the natural rate of employment has changed and it may be lower while Chicago Fed President Austan Goolsbee said the latest inflation numbers are at the Fed's target and the labor market is at full employment.
US Treasury yields continued to rise as traders reduced their chances of a 50 basis point cut in November.
The US 10-year Treasury note yielded 3.84%, up five basis points and the US Dollar Index (DXY) which tracks the dollar's performance against a basket of six currencies rose 0.35% to 101.95.
