Gold bars and coins are stacked in the safe deposit boxes room of the Pro Aurum gold house in Munich, Germany, August 14, 2019.

Gold edged higher on Thursday, heading for its second daily gain after falling the most in seven years on Tuesday.

Spot gold rose as much as 1.4% to $1,942.67 an ounce on Thursday, continuing Wednesday's gains. On Tuesday, the precious metal slumped nearly 6%, the biggest one-day loss since 2013.

The plunge came just after gold hit a record high, surpassing $2,000 an ounce, one week earlier, lifted by hopes of further US coronavirus stimulus.

"We are continuing to see a bounce back in previous metal markets, although there's still some way to go to get back to last week's peak," said Craig Erlam, senior market analyst at OANDA, in a Thursday note. "Treasury yields have remained off their lows which is likely holding back prices."

Silver also rose, reversing losses from earlier in the week. Spot silver gained nearly 5% to $26.76 an ounce on Thursday.

Spot gold has surged more than 27% year-to-date.