The precious metal was up 3.07% to $1,231.60 at 11:42 a.m., according to CNBC.
Jewelers began to buy more gold to help meet seasonal demand, which helped drive the price of the precious metal higher on Tuesday.
Must Read: Warren Buffett's 25 Favorite Stocks
Gold prices have been declining in recent weeks, and Credit Suisse went as far as to issue a bearish note on the precious metal in mid-November. The firm said one of its 10 best trade ideas for next year is to short gold.
Credit Suisse set a price target of $950 on gold through the end of 2015 and said the precious metal's recent drop below the $1,180 mark indicated the continuation of a bearish trend.
"Gold remains very expensive relative to historical norms, with carrying costs becoming more penal as U.S. interest rates begin to rise," the firm wrote. Credit Suisse added that a strong U.S. dollar would continue to weigh on gold.
Separately, TheStreet Ratings team rates YAMANA GOLD INC as a "sell" with a ratings score of D. TheStreet Ratings Team has this to say about their recommendation:
"We rate YAMANA GOLD INC (AUY) a SELL. This is driven by multiple weaknesses, which we believe should have a greater impact than any strengths, and could make it more difficult for investors to achieve positive results compared to most of the stocks we cover. The company's weaknesses can be seen in multiple areas, such as its feeble growth in its earnings per share, deteriorating net income, disappointing return on equity and generally disappointing historical performance in the stock itself."