The most actively traded contract, for June delivery, settled up $US16, or one per cent, at $US1,630.10 a troy ounce on the Comex division of the New York Mercantile Exchange.
The Comex floor will be closed on Friday in observance of Easter, and markets in much of Europe will also be shut for the holiday.
Gold futures caught a boost from investors looking to repurchase previously sold contracts ahead of the three-day break, especially with March US employment data due to be released early Friday.
"Traders will look to a long weekend with a bit of worry as, while the markets are closed tomorrow, the US will release the all-important Non-farm Payrolls," RBC Capital Markets said in a note.
Investors betting on lower prices prefer to close such positions ahead of long breaks like weekends in order to avoid the impact of unforeseen events.
US employment data will be of special focus for gold traders as improvement in the labour market has reduced the likelihood that the Federal Reserve will launch a third round of stimulus.
A two-day losing streak lopped about four per cent off the price of gold as investors aggressively sold positions in reaction to the Federal Reserve's taciturn stance on further stimulus measures, conveyed in meeting minutes released Tuesday.
"US financial markets are just beginning to factor in the adjustment to a pausing or lack of further quantitative easing and financial programs such as 'Operation Twist'," Ira Epstein, director of the Ira Epstein Division at the Linn Group, said in a research note.
"The Fed seems very satisfied at this point in keeping its bullets in its gun holster," Epstein added.
Earlier Thursday, the tide of selling appeared to turn, as lower prices drew some bargain hunters to the market.
"The market is cheap from where we were three or four days ago," said Sterling Smith, analyst with Country Hedging.
Precious metals prices recovered in the face of a stronger US dollar, which continued to make gains against the euro and other international currencies.
As the US dollar strengthens, dollar-denominated contracts like gold futures appear more expensive to international investors in their home currency terms, damping their interest in these markets.
Silver for May delivery, the most active contract, settled up 68.6 US cents, or 2.2 per cent, at $US31.730 a troy ounce.
In other precious metals: July delivery platinum closed at $US1,607.60, up $US9.00; and June palladium finished at $US644.80, up $US12.05.
