Gold's rise extended its gains for a fourth straight day, defying the buoyant US dollar amid risk aversion.
At 9.20am, gold was at $2,654.19, up 0.14% since it opened early Thursday in Asian trading.
The yellow metal's decline to a two-month low of $2,536 was attributed to investors turning to safe-haven assets in the USD following President Donald Trump's victory in the US election.
Concerns that some of his proposals could spark a resurgence of inflation sent US Treasury yields soaring, supporting the US dollar.
However, bullion prices have risen due to the escalating Russia-Ukraine conflict.
On Tuesday, Russian President Vladimir Putin authorised the use of nuclear weapons in retaliation for Western support. Reports revealed that Joe Biden authorised the use of US weapons by Ukraine on 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 that the Fed would bring inflation down to its 2% goal but did not reveal whether she would support a rate cut next month.
Bowman, meanwhile, saw the economy making significant progress on inflation having stalled, prompting the Fed to be more cautious.
Towards the end of the week, the US economic calendar will feature Initial Jobless Claims, S&P Global Flash PMI and the final University of Michigan (UoM) Consumer Sentiment reading for November.
