Investing.com - Gold futures for February delivery increased 0.6% at $1,177.50 per troy ounce on the New York Mercantile Exchange on Wednesday.
The US Dollar Index was down 0.3% at 90.87. Generally, a softer dollar tends to bolster gold, which is priced in U.S. dollars and becomes cheaper to foreign buyers when the dollar declines.
Investors took profits on some bets against the precious metal.
Gold prices are still down, now by 15%, from earlier highs this year.
Investors have now withdrawn gold from Exchange Traded Funds (ETF) for 18 consecutive days.
Silver gained on Wednesday.
The belief that the Federal Reserve will increase interest rates soon is also a factor weighing on the minds of investors in gold and silver.
The Fed is planning to raise interest rates, it is widely held, because after a decade of stagnation, the U.S. economy is finally generating stronger growth. The fed's Janet Yellen is said to want to contain inflation with a pre-emptory interest rate increase that will keep wages and prices in line.