Gold investors welcomed Federal Reserve (Fed) Chairman Jerome Powell's dovish remarks about the possibility of slower interest rate hikes soon.
The Asian session saw the yellow metal trade firmly around a three-month high of $1,776 an ounce, with gold futures stronger at $1,790 an ounce.
The precious commodity initially fell due to better-than-expected gross domestic product (GDP) readings in the United States, but rebounded after hearing Powell's statement.
Reviewing the latest comments from the head of the US central bank, he said the central bank is well-positioned to reduce the size of rate hikes as soon as December.
However, he also warned that the fight against inflation is far from over and there is no indication of how much rates will need to be raised and how long the tightening will last.
Investors are now raising expectations for a 50 basis point hike in Fed interest rates at the upcoming December 13-14 policy meeting.
The focus next shifts to tonight's personal consumer spending (PCE) data and Friday's US NFP jobs report.
