Gold rallied to climb above $1,800 per ounce on Tuesday, with recession fears and a weaker dollar helping lift bullion's appeal.
Spot gold rose over 1 percent to $1,806.17 per ounce, while U.S. gold futures were up 1 percent at $1,816.05.
It is now becoming clear that central bankers around the world might be willing to risk causing a recession in order to control inflation.
Former Federal Reserve official William Dudley said on Monday it was likely interest rates could go higher even as U.S. unemployment started to creep higher.
The dollar dipped in forex markets after the Bank of Japan (BoJ) announced a surprise shift in the central bank's yield curve policy that heralds a possible monetary tightening.
The Bank of Japan left its key interest rate unchanged today but widened the band of 10-year Japanese government bond yield target to address disturbance in the bond market.
Elsewhere, China's central bank kept its benchmark lending rates unchanged for the fourth consecutive month.
