Gold regained its early-week highs by rising 0.80% on Wednesday as US economic data on business activity came in weaker than expected despite positive employment figures.
At 9.20am, gold was at $3,375.72, up 0.11% since it opened early Thursday in Asian trading.
Trade war tensions between the US and China pushed gold prices higher and created uncertainty about the outcome of talks between the two world economic giants.
Bullion prices also found support on softer US economic data.
In addition, US President Donald Trump signed an executive order raising tariffs on steel and aluminium from 25% to 50% effective on Wednesday, ahead of a scheduled phone call between Donald Trump and Xi Jinping this weekend.
In addition, US economic data revealed that the positive figures and the need for further action by the Federal Reserve (Fed).
The Institute for Supply Management (ISM) showed business activity in the services sector contracted for the first time in nearly a year and private hiring slowed sharply in May.
After the data, Trump accused Fed Chairman Jerome Powell of being too late in easing policy and his officials remained cautious about continuing the plan to cut rates in the second half of 2025.
This week, market participants will assess May's unemployment figures followed by the Non-Farm Payroll (NFP) report on Friday.
