Spot gold rose 0.9% to US$4,197.41 per ounce by 0238 GMT, after reaching its weakest level since 11 June in the previous session. Meanwhile, US August gold futures fell 0.7% to US$4,215.90 per ounce.

The rebound came as oil prices eased after indications from Iran that progress had been made in discussions with the United States, thereby improving market sentiment.

However, expectations of further interest rate increases, following hawkish signals from the US Federal Reserve, continued to weigh on the outlook for the precious metal, limiting gains.

Among other precious metals, spot silver rose 1.8% to US$66.10 per ounce, platinum gained 0.2% to US$1,667.97 per ounce, and palladium rose 1% to US$1,270.41 per ounce.