Gold remained below $2,400 after extending its slide since the end of last week as US Treasury yields rose amid an uptick in market sentiment.
Rising tensions in the Middle East further limit gold's losses from further dives.
At 9.30am, gold was at $2,382.20 an ounce, down 0.39% since it opened in early Asian trade on Wednesday.
However, there was a market recovery on Monday when European and US equity indices recorded strong gains.
In addition, the position of the US dollar currency remained attractive to investors and was the main driver of the decline in the price of the famous yellow metal. The US Dollar Index (DXY) was positive against other major currencies by rising 0.30% to 102.97.
High US Treasury yields are also blocking gold price gains for now. The benchmark US 10-year rose ten basis points to 3.892% despite broad sentiment that the Fed will implement a 50 basis point interest rate cut at its September meeting.
From a geopolitical point of view, the war conflict is heating up after Hezbollah launched an attack on northern Israel and this increases the prospect of gold heading back towards $2,400.
Regarding the central bank's policy, the (Fed) policymaker presented by the San Francisco Fed, Mary Daly said there are two important risks that are the main focus and they are open to reducing borrowing costs at the next meeting.
