Spot gold was up 1.1% at $4,140.19 per ounce. Bullion fell to a near two-week low in the previous session.
U.S. gold futures for December delivery climbed 2.1% to $4,152.40 per ounce.
Prices hit a record high of $4,381.21 on Monday, but logged their steepest drop in five years in the following session.
Gold has soared in value this year
“All the fundamental factors that have driven gold higher this year remain very much in place. There was some opportunistic buying on the dip and perhaps some uptick in trade and geopolitical tensions that are fostering today’s bid,” said Peter Grant, vice president and senior metals strategist at Zaner Metals.
Gold prices have gained about 57% this year, driven by geopolitical tensions, economic uncertainty, expectations of rate cuts, and sustained central bank buying.
U.S. President Donald Trump on Wednesday imposed Ukraine-related sanctions on Russia for the first time in his second term, targeting oil companies Lukoil and Rosneft.