The precious metal was trading at $1,936 on Friday afternoon, having started the day at $1,921, reflecting a hefty bump-up over the week from its opening position of $1,879 per ounce on Monday.
There are concerns of market instability and the possibility of contagion in the US banking sector, which investors prefer to use gold as a safest alternative to gold.
Multiple stock market crashes, wars, and pandemics have kept the asset as an investment option through a period of great instability.
After the collapse of Silvergate, then of Silicon Valley Bank and Signature, US banks are teaming up to shore up First Republic Bank with $30 billion in deposits.
Craig Erlam, senior market analyst at Oanda said: "The question on traders lips is whether fear is baked in, meaning yields could decline as the dust settles, which could cause a near-term headwind for gold or if the turbulence is just getting started. Time will tell, but further fallout may see gold move closer to February highs, around $1,960, with $2,000 then above that. There is speculation that the US Federal Reserve could ease off planned interest rate hikes, which would boost gold.
Rupert Rowling, market analyst at Kinesis Money, is less convinced.
He said that it is worth noting that the European Central Bank did increase its benchmark rate by 50 basis points, as originally expected, and didn't change its approach with the troubles Credit Suisse is facing reminding investors that this isn't a uniquely American problem. This increases the likelihood that the Federal Reserve will hike again when it meets next week, and with rates continuing to rise, that is likely to put a cap on how gold can climb.