The precious metal hit a high of $1252.33 an ounce, while currently trading around $1252.26 from the opening at $1243.81.
The World Bank slashed global growth forecasts on Wednesday to 2.4 percent, down from 2.9 percent from January’s forecasts, citing low commodity prices and slowdown in demand.
Data released today showed China exports tumbled an annualized 4.1 percent in May from1.8 percent drop in April, reflecting the weakness in global demand.
Gold may gain for a second straight week after Yellen’s cautious comments about the labor market, which raised expectations the Fed would not raise interest rates next week.
Her comments came after a disappointing NFP data showing American employers created the fewest number of jobs in more than 5-1/2-years in May.
Expectations for an interest rate hike by the Fed next week have dropped dramatically, especially after the World Bank’s warnings.
Now, analysts believe the Fed would hike interest rates in July or even later in September, which could help non-interest bullion in the coming period.
The green currency dipped to five-week low of 93.67 against a basket of major currencies from the opening at 94.08, according to the dollar index.
The fall in the dollar helped commodities to gain ground, where crude oil resumed its advance for a third consecutive session to $50.67 a barrel.
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