Bullion prices are seen successfully entering the $5,200 level after being seen flat since last week as the conflict and tension in the Middle East are easing.
At 8.30 am, gold prices were at $5,209, up 0.34% since it opened in early trading on Wednesday in the Asian session.
US President Donald Trump said on Monday that US military operations in Iran are expected to end soon. However, he did not give any clear timeline on when the attacks will be stopped.
The statement slightly eased the concerns of global markets that were previously disturbed by the conflict in the Middle East.
Initial market reactions saw oil prices decline, thus reducing concerns about global inflationary pressures. This situation indirectly provided support for gold prices.
However, traders are still closely monitoring geopolitical developments in the region. Iran's Islamic Revolutionary Guard Corps (IRGC) warned that Tehran could potentially block regional oil exports if the US and Israeli attacks continue.
At the same time, Trump warned that any Iranian action that tries to disrupt oil flows through the Strait of Hormuz will be met with a response from the US.
The route is one of the world's most important energy corridors, which is the heart of global oil supplies.
Any sign of increased tensions or a prolonged war in Iran could increase demand for safe-haven assets such as gold.
In addition to geopolitical factors, the market is also focused on US economic data. The Consumer Price Index (CPI) report for February is scheduled to be released late on Wednesday.
The headline CPI data is expected to increase by 2.4% year-on-year, while the core CPI is estimated to have risen by around 2.5% over the same period.
If the inflation figure comes out higher than expected, it could potentially strengthen the US dollar. A stronger dollar usually puts pressure on commodities denominated in the currency in the near term.
