The precious metal hit a high of $1234.08 an ounce, while currently trading around $1227.30 from the opening at $1222.64.
So far, gold has cut 0.5 percent since the beginning of May, on track for its biggest monthly decline since November.
The dollar retreated on Wednesday after U.S. reports showing a widening trade deficit in April and ease in the services sector expansion in May.
Later in the day, eyes will focus on U.S. durable goods orders, weekly unemployment claims and pending home sales.
On Friday, investors will focus on a speech by Fed Chair Janet Yellen speaks at Harvard University on Friday, as investors aim to get further clues whether the Fed would hike interest rates in June.
“Dallas Fed President Robert Kaplan on Wednesday said he would support raising interest rates in the “near future”, though a vote by Britain on whether to leave the European Union will weigh on any Fed rate decision in June,” according to Reuters.
Gold is very sensitive to interest rate movements, especially by the Fed, since the yellow metal provides no interest to its holders and thereby benefits from the low interest rate environment.
The dollar fell from a two-month high, according to the dollar index, helping gold to recover from the recent sharp drop.
Meanwhile, the dollar index, which tracks the green currency’s movements against a basket of major currencies, is trading around 95.20.
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