Gold prices advanced during Wednesday's Asian session, climbing above the US$4,100 mark as a weaker United States dollar and easing inflation expectations supported demand for the precious metal.
By 4:15 pm AEST (6:15 am GMT), spot gold was up 2.3% at US$4,168.56 per ounce.
Gold extended its gains as oil prices continued to retreat, helping to ease inflation concerns and boosting the appeal of bullion.
The precious metal also benefited from a softer U.S. dollar, with weaker labour market data weighing on the greenback and providing further support for gold prices.
Investors remained focused on negotiations over reopening the Strait of Hormuz, although uncertainty persists over whether any agreement will hold.
Markets are also awaiting the release of the U.S. ADP Employment Change report, which could influence the near-term direction of gold.
Economists expect the ADP report to show private employers added 70,000 jobs in July, down from 98,000 in June.
Meanwhile, money markets are pricing in a 56.9% probability that the U.S. Federal Reserve will cut interest rates in September, down from 67.2% a day earlier, according to CME Group FedWatch Tool.
