Spot gold climbed 1.4% to $4,065.61 an ounce in Asian trading, driven by renewed dip-buying interest as investors assessed the macroeconomic implications of ongoing Middle East clashes.
The precious metal touched an intraday high near $4,068, marking its strongest level in more than two weeks.
The rally reflects a shift in market sentiment as traders weigh the potential for energy price spikes to feed into broader inflation metrics.
With oil prices having climbed earlier in the week on supply concerns, gold is regaining its status as a key hedge against geopolitical risk and currency debasement fears.
This move contrasts with recent volatility, where gold had retreated amid shifting risk sentiment.
However, the current uptick suggests that safe-haven demand is reasserting itself as the geopolitical outlook remains uncertain.