Gold closed above a three-week low on Thursday, following its biggest drop in over a month, as the dollar rose following strong U.S. housing data that stoked expectations the Federal Reserve could raise interest rates soon.
Spot gold was up 0.8 percent at $1,197 an ounce, after touching its lowest since April 1 at $1,183.65.
The metal fell 1.3 percent on Wednesday, its biggest single-day decline since March 6, pressured by a stronger dollar after U.S. home resales surged to their highest level in 18 months in March.
U.S. gold futures for June delivery closed up $7.40 at $1,194.30 an ounce.
"On the one hand, you are seeing some geopolitical support, limiting any downside, on the other the U.S. interest rates story supports the dollar," Citi strategist David Wilson said.
"It's difficult to get excited about gold one way or another."