Spot gold was up 0.1 percent at $1,188.33 an ounce by 1109 GMT. It dropped 2 percent in the previous session and touched its lowest since Feb. 8 at $1,180.99 overnight.
U.S. gold futures eased by 0.1 percent to $1,188.10.
With U.S. markets out for the Thanksgiving holiday, trade is expected to thin down later in the day.
Spot prices have dropped nearly 12 percent from a high of $1,337.40 on Nov. 9, when Donald Trump was announced U.S. president-elect.
"The expectation that Trump's election would lead to a longer risk-off period in financial markets was soon overtaken by the perception that he would be able to boost growth and that inflation would be accompanied by rising interest rates, which raised a bearish scenario for gold," said Julius Baer analyst Carsten Menke.
"At least in the short term there is some consolidation due in the dollar and U.S. Treasury yields, and this is something that should provide gold (with) some support," he added. "Still, the big risk would be continued selling of investor physical holdings."
Holdings of SPDR Gold Trust, the world's largest gold-backed exchange-traded fund, fell 1.47 percent from the previous day to 891.57 tonnes on Wednesday. Holdings have declined by more than 5 percent this month.