Gold traded near its highest level in two weeks on Wednesday as the drop to a four-month low enhanced some physical demand for the metal.
The metal rose after finding support at the $1240 level, and is currently facing resistance at the $1260 level.
Demand from China, the world’s biggest bullion buyer, soared for a second day yesterday to a two-week high of 12,914 kilograms, from a two-month low of 8,568 kilograms on June 6, according to the benchmark spot contract in Shanghai.
In the U.S., all eyes will focus on retail sales data due later in the week after the NFP showed that U.S. employers added 217,000 jobs in May and unemployment rate lingered at 6.3 percent.
Investors will keep their attention on U.S. data amid expectations the Fed will continue with its stimulus reduction.
Gold is currently trading around $1260.32 an ounce after hitting a high of $1262.46 and a low of $1257.71.
The yellow metal however, may face some pressure as world stocks remained near record highs on Tuesday.
The U.S. dollar inched down versus a basket of major currencies to hover around 80.82, after touching a peak of 80.92.
Crude oil for July delivery edged up to trade around $104.58 a barrel from the session’s opening of $104.29.
Oil prices extended their gains after taking a breather on Tuesday on predictions that crude inventories slipped for a second week in the U.S., the world’s largest oil consumer.