Gold rose for a third straight session on Wednesday, helped by a softer dollar and lower oil prices, while investors awaited U.S. jobs data for clues on the interest-rate outlook.
Spot gold was up 1.4% at $4,133.83 per ounce by 0455 GMT, a two-week high. U.S. gold futures rose 1% to $4,191.90.
The U.S. dollar remained subdued, making greenback-priced metals more attractive to holders of other currencies.
Oil extended declines after steep falls in the previous two trading sessions. Lower oil prices can ease inflation concerns that often feed expectations of higher interest rates.
"Gold's relation with oil is still intact as oil prices have a tremendous impact on the global economy in terms of inflationary pressure. If we get a very clear roadmap to further de-escalation in tensions, gold prices could move higher," said Kelvin Wong, a senior market analyst at OANDA.
Traders are now pricing in a 59% probability of a Federal Reserve interest rate hike at the central bank's September 15-16 meeting, down from 67% a day earlier.
Gold tends to lose its appeal in a high interest-rate environment despite its status as an inflation hedge, as it yields no interest.
Federal Reserve Bank of Philadelphia President Anna Paulson said she was keeping an "open mind" about what lies ahead for monetary policy in an outlook that could call for higher rates.
Traders were looking ahead to the ADP employment report due later in the day and the July payrolls report scheduled for Friday.
Analysts at TD Securities said in a note that they expect gold to remain range-bound near current levels.
Spot silver gained 2% to $60.70 per ounce and platinum was up 1% to $1,751.03, after hitting its highest level since mid-June earlier. Palladium rose 0.5% to $1,360.25, after scaling a two-month peak.
