Gold prices held steady on Thursday, even as the dollar hit a one-week high on hawkish Fed minutes.
Spot gold was little changed at $1,223.65 an ounce while U.S. gold futures eased marginally to $1,226.70.
A sell-off in Asia added some appeal to gold, which is seemingly resuming its safe-haven status.
Asian markets ended mostly lower, with China's Shanghai Composite index ending down nearly 3 percent, as core lending data disappointed and the yuan hit its weakest level in almost two years, testing the government's ability to maintain financial stability amid slowing economic growth.
The U.S. Treasury Department has decided not to label China a currency manipulator, but Secretary Steven Mnuchin said that China's lack of transparency over its currency and recent weakness in the yuan are of "particular concern" for the United States and "pose major challenges to achieving fairer and more balanced trade."
Separately, the Trump administration moved to withdraw from an international treaty on postal rates in a move aimed at pressuring Beijing.
European stocks edged higher in cautious trade, while U.S stock futures point to a lower opening.
U.S. Treasury yields climbed back toward seven-year highs after minutes from the Federal Reserve's September meeting indicated that the U.S. central bank is staying the course on rate hikes, despite Trump calling it the "biggest threat" to his presidency.
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