On Wednesday, gold prices reached crucial levels, supported by safe-haven demand as a run of disappointing U.S. firm earnings and economic data stoked concerns about a possible economic slowdown this year.

After First Republic Bank reported a significantly larger-than-expected decline in its deposits, which soured sentiment toward regional banks, renewed concerns of a banking crisis also spurred demand for safe haven assets.

The dollar and the yellow metal both advanced on Tuesday, showing that investors were mostly looking for safe haven assets amid rising economic unpredictability.

Spot gold edged up by 0.2% to $2,001.76 per ounce, meanwhile gold futures added 0.4% to $2,011.65 per ounce. The two instruments surged massively on Tuesday, and were poised for gains for the third day in a row.

In recent weeks, gold had suffered from monetary policy uncertainty and a strengthening dollar as investors divided on when the Federal Reserve would stop raising interest rates.

When the bank meets the following week, it is widely anticipated that it will increase interest rates by 25 basis points. The bank may also give some hints as to how much higher interest rates will go.