The Federal Reserve raised rates in December and attention has shifted to how many increases will follow in 2016.
The dollar and risk-sensitive currencies had recovered ground against the yen and the euro after China's central bank held the yuan steady and better than expected Chinese trade data helped to reduce some of the bearishness toward the world's second-largest economy.
But with Chinese economic growth slowing and its stock markets still vulnerable, analysts see it as unlikely that gold will lose too much ground.
"It doesn't mean it's all over; the market is pretty short and a lot of the uncertainty about the global economy has not been resolved," Macquarie's Turner said.
Holdings of the world's largest gold-backed exchange-traded fund, New York-listed SPDR Gold Shares, rose 2.1 tonnes on Monday, data from the fund showed.
China launched interbank gold trading at the beginning of this year as part of a broader drive to open up the country's bullion market and increase financial investment in the world's largest consumer of the precious metal.
Among other precious metals, palladium rose 3.09 percent to $484.30 an ounce after sliding to a 5-1/2-year low of $449.55 on Tuesday.
Silver gained 2.79 percent to $14.14 an ounce, while platinum was up 1.2 percent at $848.30.