Several Federal Reserve officials are scheduled to speak this week, keeping the focus of the bullion market firmly on US monetary policy. Traders will also be closely monitoring economic data, including nonfarm payrolls data due on Friday, to gauge the strength of the economy.
Fed Vice Chairman Stanley Fischer said on Saturday that US inflation will likely rebound as pressure from the dollar fades, allowing the US central bank to raise interest rates gradually.
Some Asian stocks recovered in tandem with US futures even as Chinese shares tanked further. The dollar gained versus a basket of currencies after falling the most since 2011.
After Monday's rout, most Asian stocks recovered in tandem with US futures and Chinese shares pared losses.
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.
Bullion was also set to end July with its biggest monthly decline in more than two years after a deep rout last week further shook investor confidence, with more losses seen ahead.
After a two-day meeting, policymakers said on Wednesday they felt the economy had overcome a first-quarter slowdown and was "expanding moderately".
Without a deal, Greece risks default or bankruptcy in weeks, a possibility that has supported gold prices to an extent. Athens missed a self-imposed Sunday deadline for reaching an agreement to unlock aid, sources close to the talks said.
Tensions in the Middle East after Saudi Arabia and its allies launched air strikes in Yemen provided some support to gold, seen as a safe-haven asset.
Gold, trading at about USD 1,158 an ounce on Friday, touched USD 1,147.10 on Wednesday, the lowest since Dec. 1. The metal fell for nine straight sessions to Thursday, the longest losing streak since 1973.
A weaker dollar after lacklustre US data, however, checked losses in gold which is seen as a safe-haven asset.