Gold edged higher after sinking to its lowest close since March, with investors tempering bets on future Federal Reserve rate hikes.

Yields on US Treasuries stabilized as traders trimmed expectations for further tightening, after a sharp rise on Wednesday following the Bank of Canada's unexpected decision to restart its rate-hiking campaign. Markets are still tilting toward higher US rates, which are usually negative for non-interest bearing gold.

Traders also assessed the Reserve Bank of India's decision to leave its key rate unchanged after surprise hikes in Canada and Australia. Meanwhile, China increased its gold reserves for a seventh straight month, signaling ongoing strong demand for the precious metal from the world's central banks.

Spot gold climbed 0.4% to $1,947.06 an ounce as of 1:36 p.m. in Singapore, after falling 1.2% on Wednesday. The Bloomberg Dollar Spot Index slipped 0.2%. Silver rose, while platinum and palladium edged higher.

Source : Bloomberg