Gold's gains extended its gains for a fourth consecutive day, brushing aside buoyant US dollar trade due to risk aversion factors.
At 9.20am, the price of gold was at $2,654.19, up 0.14% since it opened in early trading on Thursday in the Asian session.
The yellow metal's drop to a two-month low of $2,536 was attributed to investors turning to safe-haven USD assets after President Donald Trump's victory in the US election.
Concerns that some of his proposals could trigger a re-acceleration of inflation sent US Treasury yields soaring and supported the US dollar.
However, bullion prices have risen due to the escalation of the Russia-Ukraine conflict.
On Tuesday, Russian President Vladimir Putin authorized the use of nuclear weapons in retaliation for western support. Reports reveal that Joe Biden authorized the use of US weapons by Ukraine against Russia.
Recently, Fed Board Governors Lisa Cook and Michelle Bowman failed to signal the outcome of the December Federal Open Market Committee (FOMC) policy meeting.
Cook remained confident the Fed would lower inflation toward its 2% goal but did not reveal whether he would support a rate cut next month.
Bowman, meanwhile, sees the economy showing significant progress on inflation has stalled and prompted the Fed to be more cautious.
Towards the end of the week, the US economic table will feature Initial Jobless Claims, S&P Global Flash PMI and the final reading of the University of Michigan (UoM) Consumer Sentiment for November.
