Gold inched up on Wednesday after hitting its lowest in five weeks in the previous session, buoyed as equities fell and the dollar eased from one-month highs following a tumble in crude oil prices.
A renewed slump in oil markets to seven-month lows put Asian investors on edge, and pushed down U.S. Treasury yields and the dollar index against a basket of currencies.
"It's mostly the dollar (supporting gold). It is a little bit weaker than yesterday's closing," said Yuichi Ikemizu, Tokyo branch manager at ICBC Standard Bank.
Spot gold was up 0.23 percent at $1,245.58 per ounce.
U.S. gold futures for August delivery increased $2.30, settling at $1,245.80.
Gold is also being supported by a bout of short-covering following its recent weakness, said OCBC analyst Barnabas Gan.