The yellow metal continued to extend its strengthening momentum at a four-week high as a decline in the US dollar and US treasury yields boosted demand for the safe-haven asset.
In the Asian session, spot gold traded higher at $1,777 an ounce, after hitting a high of $1,780 earlier in the session. Meanwhile, gold futures were higher at $1,794 per ounce.
Gold has gained support as investors continue to raise expectations that the Federal Reserve (Fed) will slow its aggressive rate hikes.
The dollar index slipped lower to a four-week low against major currencies, while the 10-year US bond yield slipped to 2.53%, the weakest in four months.
Also supporting the precious metal is the gloomy outlook for economic growth following US Gross Domestic Product (GDP) data showing a decline in the second quarter.
The reading of the manufacturing PMI data from the ISM survey showed that manufacturing activity in the US slightly decreased although the reading was better than expected in July.
Data from China also disappointed with a decline in the manufacturing sector in July, indicating the impact of the zero-sum policy of Covid-19 continues to weigh on economic activity.
Decline in key sectors reflected gloomy economic outlook causing safe-haven gold and yen to be in demand from investors.
