On Thursday, gold prices edged up in Asian trading as lower-than-expected U.S. inflation data encouraged speculations on an early Federal Reserve rate-hike halt and rising recession fears drove safe-haven purchasing.

The recent spike in gold was sparked by consumer inflation figures in the United States, as markets started pricing in the prospect that the Fed could stop raising interest rates as early as June.

The minutes of the Fed's meeting in March indicated that decision-makers were pondering a halt to rate increases. But they were also concerned about a "mild recession" later this year as a result of the banking crisis and the slowing of economic growth brought on by rising interest rates.

When many U.S. banks failed in March, speculators rushed into traditional safe havens, which led to a month-long rise in gold.

Spot gold added 0.1% to $2,017.86 per ounce, while gold futures advanced by 0.4% to $2,032.05 per ounce. Both were gearing towards gains for the third day in a row.