The price of gold in spot transactions jumped 0.8% to $ 1829.20 an ounce by 1008 GMT, while US gold futures rose 0.7% to $ 1827.70.
The dollar fell 0.3%, while US Treasury yields fell to their lowest levels in a week, making gold cheaper for foreign investors.
European shares also fell today following heavy selling on Wall Street overnight, prompting investors to turn to gold as a safe haven asset.
Gold prices fell to their lowest level in 4 months earlier this week and have risen regarding 2% since the dollar retreated from its highest level in 20 years.
Among other precious metals, spot silver prices rose 0.7% to $21.53 an ounce, platinum rose 0.1% at $935.93, while palladium fell 1.8 percent to $179.38.