The metal has broken a lower resistance at $1,875. The break confirms an extension of the wave C from $1,755.81. Most likely, this wave could travel to $1,921.
Spot gold was 0.9pc higher at $1,884.46 by 12:17 p.m. EDT (1617 GMT), having earlier hit its highest since Jan. 8 at $1,889.75. U.S. gold futures gained 0.9pc to $1,885.50.
"The scope for further declines (in gold prices) may be modest," HSBC analysts said in a note, adding that a decline in yields offers gold a chance to rally.
Spot gold may test a resistance at $1,847 per ounce, a break above which could lead to a gain to $1,876, according to Reuters technical analyst Wang Tao.
Spot gold rose 0.3pc to $1,784.23 per ounce by 1:50 p.m. EDT (1750 GMT), after falling about 0.8pc on Tuesday. U.S. gold futures settled up 0.5pc at $1,784.30.
Elsewhere, palladium rose 0.3% to $2,993.71 per ounce after hitting an all-time high of $3,017.18 in the previous session, driven by concerns of a shortage of the metal.
More than 153.02 million people have been reported to be infected by the novel coronavirus globally and 3,344,235? have died, according to a Reuters tally.
"Better economic data weighed on bonds, with yields subsequently rising and denting investor demand for the precious metal," ANZ analysts said in a note.