Gold surged during late Asian trade on news of Israel's attack on Lebanon and regained its position above $2,400.
Previously, gold experienced difficulty in breaking through price resistance at a time when US economic data recorded strong figures, especially in the employment report.
At 9.30am, the price of gold was at $2,407.19, down slightly by 0.61% since it opened in Asian trading on Wednesday.
Numerical sentiment is seen as somewhat mixed with the decline in US Treasury bond yields and the USD currency sponsoring the rise in gold prices ahead of the Federal Reserve's (Fed) monetary policy decision early Thursday morning.
Economic data from Europe saw Germany enter recession territory following a weaker-than-expected reading of Gross Domestic Product (GDP) in the second quarter of 2024.
This report could prompt a reaction from the European Central Bank (ECB) which is expected to cut interest rates in September.
Meanwhile, geopolitical risks prompted a surge in the precious yellow metal after Israel launched an attack on the southern suburbs of Beirut on a mission to target a Hezbollah commander.
The Fed is expected to keep rates on hold for now and deliver a dovish message to signal to market participants about the start of an easing cycle.
Additionally, investors will look to the release of the Institute for Supply Management (ISM) Manufacturing PMI and the Non-Farm Payrolls (NFP) report for July.
