Update prices
Spot gold was up 0.1 percent at $2,408.77 per ounce by 0354 GMT. The yellow metal fell to its lowest since July 26 in the previous session, amid a global sell-off driven by fears of a U.S. recession.
U.S. gold futures rose 0.2 percent to $2,449.50.
Federal Reserve policymakers dismissed the idea that weaker-than-expected July jobs data meant the economy was in recessionary free fall, but they also warned that the central bank would need to cut interest rates to avoid that outcome.
Traders now expect the Fed to cut rates by 110 basis points this year, with a more than 70 percent chance of a 50 basis point cut in September.
Low interest rates put pressure on the dollar and bond yields, while increasing the appeal of non-yielding gold.
As for other precious metals, silver in spot transactions fell 0.2 percent to $27.23 per ounce.
Platinum rose 1.2 percent to $917.30 an ounce, while palladium rose 0.9 percent to $857.25 an ounce, after hitting its lowest since August 2018 on Monday.
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