Gold prices drifted higher on Wednesday driven by safe-haven demand and rising bets that the U.S. Federal Reserve might reduce interest rates as early as September, reports Reuters.
Spot gold rose 0.6 per cent to $2,402.43 per ounce, as of 1242 GMT, having settled lower in the previous four sessions. U.S. gold futures gained 0.5 per cent to $2,442.70.
Gold is seeing some "stabilisation as some interest develops in the physical gold markets in the far East; geopolitical tensions are still supportive," said StoneX analyst Rhona O'Connell.
"It's possible that some distressed sellers from the weekend/Monday will be looking to re-establish their positions as gold has done its usual job by providing liquidity ahead of potential margin calls."
Prices fell as much as 3 per cent on Monday, caught in a global sell-off driven by fears of a U.S. recession.
Bullion is considered a hedge against geopolitical and economic uncertainties and tends to thrive in a low-interest-rate environment.
Meanwhile, China's central bank held back on buying gold for its reserves for a third straight month in July, official data showed.
Spot silver edged 0.1 per cent lower to $27.02 per ounce.
Platinum rose 1.8 per cent to $928.25 and palladium was up 2.5 per cent to $896.65.
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