Gold prices edged up on Wednesday, supported by jitters over political uncertainty in the United States ahead of a major central banking conference this week.
Spot gold was up 0.44 percent to $1,289.90 an ounce, after shedding 0.5 percent in the previous session.
U.S. gold futures settled at $1,294.70 per ounce.
"Gold's kind of hanging in there before this Jackson Hole meeting. It is in a wait-and-see mode but we should have a better idea of direction by the end of this week," said Fawad Razaqzada, a technical analyst at FOREX.com.
"There can be an argument made for a bearish view on gold as this stage. If the dollar were to come back due to short covering and given the rally in U.S. stocks we saw yesterday, the buck-denominated and safe haven metal could fall out of favour."
Markets are turning their focus to a meeting of central bankers in Jackson Hole, Wyoming, later in the week where Federal Reserve Chair Janet Yellen and European Central Bank chief Mario Draghi are set to deliver speeches on the outlook for monetary policy and interest rates.
Gold is highly sensitive to rising U.S. interest rates, as these increase the opportunity cost of holding non-yielding bullion, while boosting the dollar, in which it is priced.
"Most of the people are now looking for hints from the Jackson Hole meeting between the central bankers," said Mark To, head of research at Hong Kong's Wing Fung Financial Group.