Spot gold was 0.2 percent higher at $1,292.19 by 1:39 p.m. ET (1739 GMT), having gone as low as $1,286.20, its weakest since December 27.
United States gold futures for June delivery were slightly changed at $1,320.50, though the weakness in dollar appears to be helping gold prices in Asia, a Hong Kong-based trader said.
Gold prices recovered some lost ground on Wednesday on short-covering after prices fell to the lowest level this year in the previous session on surging US bond yields and a stronger dollar.
"Now you want to start taking some profits, because statistically, it looks like it can bounce from the short-term". North Korea also called off high-level talks with South Korea scheduled for Wednesday, blaming U.S.
Higher interest rates tend to boost the dollar and push bond yields up, making greenback-denominated gold more expensive for other holders and denting its non-yielding appeal.
But higher 10-year Treasury yields, which stayed near highs hit on Tuesday, capped gold's gains, traders said, as the US dollar came off its highs. "Therefore it has not become a big driver for gold", said Helen Lau, analyst at Argonaut Securities.
Palladium was 0.1 percent lower at $994.70, after hitting a two-and-a-half-week high at $1,008.50 on Friday.
However, gold is expected to remain in the narrow range it has been trading this year - mostly between $1,300 and $1,350 - unless supply or demand fundamentals change dramatically.
The higher yields represent an opportunity for investors, especially over a longer timeline, he said at the Bloomberg Invest summit in Sydney.
Platinum was unchanged at $905.24 per ounce, while palladium fell almost 2 percent to $976.97 an ounce, after earlier dropping to an over one-week low at $964.
In other precious metals, silver was up 0.4% at $16.29 an ounce after falling about 1.6% on Tuesday in its biggest one-day percentage decline since April 23.
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