Gold hit a new high of $3,674 after news of Israel launching an attack on Qatar, targeting Hamas leaders including Khalil Al-Hayya and Zaher Jabarin.
Israeli media reported that they had informed the United States (US) about the attack, but Qatari authorities called the attack a blatant violation of international law.
At 9.20 am, gold prices were at $3,625.07, having remained flat since it opened in early trading on Wednesday in the Asian session.
The safe-haven asset of the yellow metal retreated slightly from its peak following the release of revised US labor data, a sentiment that continued to undermine the broad-based low position for the US dollar.
For now, market players are now turning their attention to US inflation data. The Producer Price Index (PPI) report for August is due on Wednesday and the Consumer Price Index (CPI) data on Thursday will be published.
Inflation data will be assessed next, after the dismal employment figures and ahead of the Federal Reserve's (Fed) monetary policy announcement next week.
