Spot gold was unchanged at $1,292.29 per ounce as of 1019 GMT, having touched its lowest level since March 7 at $1,284.76 in the previous session. U.S. gold futures were up 0.1 percent to $1,296.20 an ounce.
Rising stock markets are holding gold back, said Fawad Razaqzada, market analyst with Forex.com, adding, "investors are moving into racier equity markets rather than slower moving precious markets."
"Given the fundamental factors, even though the equity markets remain supported, it doesn't mean gold will fall. With the U.S. Federal Reserve being dovish, the dollar being low, and yields being lower, the fundamental environment for gold itself is positive."
Signs of progress in U.S.-China trade talks this week and decent factory activity data from both the countries in recent days has lifted investor sentiment and taken the edge off world recession fears.
On the technical front, "a recovery of the psychological threshold of $1,300 would be a positive signal while a fall below $1,280 could open space for a further decline to $1,260, with the latter scenario seen as the least likely, at least for now," ActivTrades chief analyst Carlo Alberto De Casa said in a note.
Among other precious metals, silver gained 0.3 percent to $15.16 per ounce, having touched its lowest level since late December at $14.90 in the previous session.
Spot palladium was down 0.2 percent at $1,426.48 an ounce, while platinum rose 1.5 percent to $858.74 an ounce.