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Gold has benefited from the equity turmoil this year, which has boosted demand for a haven and reduced bets on higher US borrowing costs. The minutes of the Fed meeting on Jan 26-27 are released Wednesday and may give indications on the balance of views within the committee.

Markets are "waiting for the Fed minutes," Barnabas Gan, an economist at Singapore's Oversea-Chinese Banking Corp, said by phone. He said he didn't expect the Fed to give concrete guidance on the timing of the next rate hike.

The metal looks overbought in the near term, there's more upside for prices on reduced expectations for higher rates and the potential for further turmoil, according to DBS Group Holdings Ltd.

Gold snapped a three-day losing streak on Wednesday, in choppy trade that saw the metal swing between gains and losses around the key $1,200 an ounce level as stock markets consolidated recent gains.

The stock market stabilisation, after last week's rout on concerns about the global economy, has reduced investor interest in gold as a safe-haven asset. Spot gold rose 0.5 percent to $1,205.56 an ounce by 0339 GMT, after earlier dropping to a session low of $1,195.40. It lost 3.7 percent in the previous three sessions.

Concerns remain that gold could correct further as some analysts say gold gained too much, too quickly.

Fears over the global economy are likely to fade and U.S. interest rate hikes will return to the agenda, hurting bullion, Bhar said.

Earlier this week, Goldman Sachs also said investors should short gold, as it believes the recent rally has been overdone.

Investors will be eyeing the minutes of the Federal Reserve's Jan. 26-27 meeting to be released later on Wednesday to gauge the U.S. central bank's view of the economy and its outlook on interest rates.

Speculation has increased in recent days that the Fed might resort to negative interest rates to stimulate the economy after Fed Chair Janet Yellen said last week it was an option that would not be taken "off the table."

Lower or negative rates would boost demand for non-interest-paying gold.

The immediate hurdle is seen at 1224.23 (Apr 6 high), above which the prices could test 1232.41 (May 18 high). On the other hand, a breakdown of immediate support at 1200 could send prices back to 1191.57 (Oct 15 high).

Reference: Reuters, FXStreet, Business Time, Business Today