Spot gold climbed 0.5% to $4,144.83 per ounce, positioning the metal for its first weekly advance in five trading sessions.
The rebound marks a decisive shift in sentiment after a prolonged period of selling pressure, driven by a reassessment of Federal Reserve policy expectations.
The rally was catalyzed by weaker-than-expected US jobs data, which significantly reduced the probability of further interest rate hikes.
As labor market softening signals a cooling economy, traders have scaled back bets on aggressive tightening, lowering the opportunity cost of holding non-yielding assets like gold.
This repricing of rate expectations provided the necessary tailwind for the precious metal to break its recent downward trend.
The move extends a recovery that began earlier in the week, following a 1.2% surge to $4,080 that ended two days of declines.