Spot gold was down 0.2 percent at $1,246.51 per ounce at 0353 GMT. On Wednesday, it touched its strongest since Feb. 28 at $1,251.26.
Spot gold ticked up 0.1 percent to USD 1,120.61 an ounce by 0048 GMT. It slid to USD 1,116.20 on Monday, its lowest since August 19.
Global stocks have lost more than USD 5 trillion since China unexpectedly devalued its currency on Aug. 11, but a short-lived recovery on Tuesday, following the cut in interest rates and bank reserve requirements, had pushed gold down 1.2 percent.
Fed officials worried that lagging US inflation and a weak global economy posed too big a risk to commit to a "lift off" on rates, buoying gold that had been out of favour amid an imminent tightening in US monetary policy.
The move hit global equities, prompting some investors to seek safe-haven assets such as gold which has now recovered around 3 percent from a 5-1/2-year low of USD 1,077 during a late July rout.
Gold stabilised on Tuesday, holding just above a five-year low, but with investors still clinging to views of further price falls a day after the metal lost 4 percent.
Greece will now be required to push legislation through parliament this week to convince its euro zone creditors to release funds to avert a state bankruptcy and start negotiations on a third bailout programme estimated at up to 86 billion euros (USD 95.5 billion).
Federal Reserve official Jeffrey Lacker repeated on Friday his call for the US central bank to consider hiking interest rates in June, and said there was no shame in adjusting them lower again if economic data demanded it.