Adding to investor concerns, the International Monetary Fund (IMF) on Tuesday slashed its global economic growth forecasts for 2019 and warned growth could slow further.
Gold is used as a safe investment during times of political and financial uncertainty.
“The yellow metal will continue to be bid as the Brexit drama and trade stories unfold at the same time that major central banks continue their dovish rhetoric,” Alfonso Esparza, senior market analyst at OANDA, said in a note.
Investors now await the release of the Federal Open Market Committee meeting’s minutes from its March meeting and the European Central Bank’s policy decision, both due later in the day.
Lower interest rates reduce the opportunity cost of holding non-yielding gold.