On Thursday, gold prices increased, with futures touching important levels as the yellow metal mostly ignored a rebound in the dollar and yields due to demand for conventional safe havens.

Spot gold added 0.5% to $1,988.85 per ounce meanwhile gold futures edged up by 0.2% to $1,999.20 per ounce.

Fears of a potential escalation in the Israel-Hamas war remained in play as missile strikes on Gaza continued, while Israel reiterated its commitment to a ground assault on the region. 

This maintained the positive outlook for gold demand as a safe haven notwithstanding overnight spikes in the currency and Treasury yields.

Although there was some demand for gold as a safe haven, it was still vulnerable to impending U.S. economic data. Data on the third quarter of the US GDP, which is anticipated later on Thursday, is predicted to demonstrate a significant acceleration in growth.

Signals of a strengthening U.S. economy are predicted to increase risk appetite while simultaneously providing the Federal Reserve with greater leeway to maintain higher interest rates for longer periods of time. The Fed's favored inflation indicator, the PCE inflation data for September, is also expected on Friday.