Spot gold climbed 1.2% to trade around $4,080 per ounce, extending a rally that ended two days of declines.
The move follows a 0.6% gain in the previous session, as investors reacted to comments from Federal Reserve Governor Lorie Warsh that softened expectations for an imminent interest rate hike.
The rebound in gold prices reflects a broader shift in market sentiment toward safe-haven assets.
With the Federal Reserve’s tone appearing more dovish than previously anticipated, the opportunity cost of holding non-yielding assets has decreased, providing fresh support for the precious metal.
This development comes amid a volatile period for global markets.
US Treasury yields had risen earlier in the week following the Federal Open Market Committee’s latest policy statement, as investors digested a marked shift in tone from the new central bank leadership.