Gold edged higher during the North American mid-session on Wednesday, supported by falling US bonds and shrugging off recent strength in the US dollar.
Additionally, expectations that major central banks will cut rates amid weak inflation readings will have an impact on the yellow metal's rising value.
At 9.30am, the price of gold was at $2,677.44, up 0.13% since it opened in early trading on Thursday in the Asian session.
Market sentiment is now recovering on expectations as illustrated by three out of four US equity indices trading in the positive.
Additionally, gold rose as market participants turned to safe-haven assets as the global economy headed for a slowdown and uncertainty over the upcoming US election.
UBS analysts predict that the current wave of sentiment will continue to increase and gold and oil prices will gain higher traction in the market.
Meanwhile, a lack of economic data kept traders focused on developments in the Middle East and China's stimulus program.
For now, market participants' attention will turn to data on US retail sales, industrial production and initial jobless claims to be published in the New York session later this evening.
