Gold's decline on Wednesday was pressured by rising US Treasury yields and profit-taking activity after it surged sharply at the end of last week.
The market is also now looking at whether President Donald Trump will name a successor to Fed Governor Adriana Kugler by the end of the year.
At 9.30 am, gold was at $3,380, up 0.31% since it opened early Thursday in Asian trading.
Bullion was hesitant to extend its four-day rally and could potentially open up some room for investors to take some profits.
In addition, President Donald Trump signed an executive order raising tariffs on India by 25% following its support for buying oil from Russia. The tariffs will take effect 21 days after August 7 and raise duties to 50% on some of its exports.
The US Treasury yield rose to 10-year at 4.241%, up three points, putting pressure on gold prices. The US Dollar Index (DXY) which tracks the performance of the US dollar fell sharply by 0.50% to 98.25 points.
Furthermore, expectations that the Federal Reserve (Fed) will cut interest rates at its September meeting remain at a high chance of 87% and the market is predicting a 58 basis point cut.
Weak US economic data this week has dragged the market's attention to assess speeches by Boston Fed President Susan Collins, San Francisco Fed Governor Mary Daly and Governor Lisa Cook.
