Spot gold was up 0.2 percent at $1,218.23 an ounce, as of 0701 GMT, after losing 0.65 percent in the previous session.
U.S. gold futures were little changed at $1,226.70 an ounce.
• "I think people are just watching the dollar. The dollar-yen is down and gold is up," said Yuichi Ikemizu, Tokyo branch manager, ICBC Standard Bank said, adding that the latest headlines on the trade war front between the United States and China had likely induced some buying.
• The dollar was slightly lower at 111.68 yen on Thursday. The greenback was, however, supported against major peers after the U.S. Federal Reserve kept interest rates steady and gave an upbeat assessment of the world's biggest economy, keeping it on course to increase borrowing costs in September.
A weaker dollar makes greenback-denominated gold cheaper for holders of other currencies while higher interest rates typically pressure gold by increasing the opportunity cost of holding non-yielding bullion.
"The FOMC (Federal Open Market Committee) didn't bring anything much and it's earnings season, so I don't expect gold to move out of a range," Ikemizu said.
• Spot gold remains neutral in a range of $1,214-$1,226 per ounce, Reuters technicals analyst Wang Tao said.
• Asian stocks fell with sentiment fragile after the latest escalation in Sino-U.S. trade war, while global bond markets were rattled by Washington's increased borrowing and Japan's new tolerance for higher yields.
• U.S. President Donald Trump sought to ratchet up pressure on China for trade concessions by proposing a higher 25 percent tariff on $200 billion worth of Chinese imports, his administration said on Wednesday.
• Elsewhere, the Bank of England looks set to raise interest rates on Thursday to their highest level since the financial crisis almost a decade ago, defying warnings that it is taking a gamble ahead of Brexit, the terms of which remain unclear.
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.• Gold prices declined as US Treasury bond yields advanced alongside the US Dollar in anticipation of a hawkish Fed monetary policy announcement, sapping the appeal of non-interest-bearing alternatives.
Gold prices remain locked in a choppy range above the 1200/oz figure. Breaking below the July 19 low at 1211.65 exposes the 38.2% Fibonacci expansion at 1197.94.Alternatively, a move above trend line resistance at 1220.02 paves the way for a retest of former support at 1236.66.
• Technically, the gold bears have the solid overall near-term technical advantage. There are still no strong, early clues to suggest a market bottom is close at hand. A 3.5-month-old downtrend is in place on the daily bar chart. Gold bulls' next upside near-term price breakout objective is to produce a close above solid technical resistance at $1,250.00. Bears' next near-term downside price breakout objective is pushing prices below solid technical support at $1,200.00. First resistance is seen at this week’s high of $1,237.80 and then at last week’s high of $1,244.70. First support is seen at $1,225.00 and then at this week’s low of $1,221.00. Wyckoff's Market Rating: 2.0
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