Gold was on track for its fourth straight session of gains on Thursday as the dollar skidded to its lowest in two weeks on concerns about the impact of high levels of U.S debt and tax cuts.
Spot gold added 0.22 percent to $1,353.6 an ounce by 2:11 p.m. EST after earlier hitting its highest since Jan. 25 at $1,357.08. It had increased 1.6 percent on Wednesday, its biggest one-day gain since May 2017.
U.S. gold futures for April delivery were down 0.15 percent at $1,356 per ounce.
"We are back to what was driving gold prior to that little spike in volatility last week which is the direction of the dollar and the longer term direction of U.S debt and how its going to be serviced," ICBC Standard Bank analyst Tom Kendall said.
The dollar index against a basket of currencies was down 0.5 percent at 88.67, after earlier hitting a near two-week low of 88.585. A recovery in broader risk sentiment was also seen weighing on the dollar, which gained during this month's market turmoil.
The U.S. currency has been hit by several setbacks this year, ranging from the possibility Washington might pursue a weak dollar strategy to the perceived erosion of its yield advantage as other countries end their easier monetary policy.