Bullion fell to a two-week low around $4,000 earlier in the week, as investors warmed up to selling activity after the United States and China agreed on a framework for a trade deal.
High attention was also paid to the Federal Reserve's (Fed) interest rate decision this week.
At 9.20 am, gold was at $4,014, up 0.83% since it opened in early trading Thursday in the Asian session.
For now, attention will turn to the meeting between US President Donald Trump and Chinese leader Xi Jinping on Thursday.
US Treasury Secretary Scott Bessent said on Sunday that the agreement would remove the threat of 100% tariffs on Chinese imports that would take effect on November 1 and include a final agreement on the sale of TikTok in the United States.
The White House also confirmed that Donald Trump will meet his Chinese counterpart, Xi Jinping, in South Korea on the sidelines of the Asia summit.
The positive developments in easing trade tensions between the world's two largest economies could weigh on gold's position.
However, expectations of a US interest rate cut are set to provide support for safe-haven gold as the market places a 97% chance of a cut at this week's FOMC meeting.
