Gold prices rose for a second straight day on Thursday as risk averse sentiment amid weaker oil prices drove up the demand for the metal, with a softer dollar and weakness in U.S. Treasury yields also lending support.
Spot gold rose 0.17 percent to $1,248.18 per ounce. It rose 0.3 percent in the previous session, its largest intraday percentage change since June 6.
U.S. gold futures for August delivery was up $3.60, settling at $1,249.40.
"A softer U.S. dollar and a risk-off bias following the recent declines to crude saw gold turn higher during Asian hours on Thursday," MKS PAMP trader Sam Laughlin said in a note.
Oil turned lower on Thursday after posting gains earlier in the session as traders look ready to test new lows for crude prices with worries persisting over a global glut.
"The uncontrolled oil price spill in the futures markets may have seen some traders pushing the risk aversion button and buying gold," said Jeffrey Halley, senior market analyst at OANDA.
"The primary driver appears to be the flattening of the longer-dated U.S. Treasury curve."