Abstract: A method is provided for sensing a magnetic field in a magnetic gradiometer of the kind in which pump light and light constituting an optical carrier traverse first and second atomic vapor cells that contain host atoms and that are separated from each other by a known distance. According to such method, the host atoms are prepared in a coherent superposition of two quantum states that differ in energy by an amount that is sensitive to an ambient magnetic field. Modulation of the optical carrier in the respective cells gives rise to sidebands that interfere to generate a beat frequency indicative of the magnetic field gradient. The host atoms are prepared at least in a mode that allows measurement of ambient magnetic field components perpendicular to the axis of the pump light. In such mode, the host atoms are spin-polarized by pump light while subjected to a controlled magnetic field directed parallel to the pump beam, and then the controlled magnetic field is adiabatically extinguished.