Spot gold climbed 2.4% on Wednesday, marking its third consecutive session of gains and reaching a one-month high.
The rally was driven by a combination of a weakening US dollar and declining oil prices, which together reduced inflationary pressures and boosted the appeal of non-yielding assets.
Investors are now closely monitoring upcoming US jobs data for further clues on the Federal Reserve's interest-rate outlook.
The move in gold reflects a broader shift in market sentiment as traders weigh the implications of softer macroeconomic indicators.
Lower oil prices have helped ease concerns about persistent inflation, allowing the Federal Reserve more flexibility to consider rate cuts.
This dynamic has strengthened the case for gold as a hedge against potential monetary easing, even as the dollar softens.