Gold rose marginally on Wednesday, recovering from selling pressure in early trade that pushed bullion to a near two-week low, with investors using the opportunity to hunt for bargains even as improved risk appetite helped global equities rally.
Asian shares came within reach of testing their 2016 peak on Wednesday as prospects of solid U.S. growth and accommodative economic policy in major countries whet investors' risk appetite damaged by uncertainty from Brexit.
In Britain, Theresa May, who will take over as prime minister on Wednesday, said she plans to set up a new government department to lead the process of withdrawing the country from the European Union.
Spot gold was up 0.4 percent at $1,336.65 per ounce after touching $1,327.30, its lowest since July 1.
Bullion fell 1.7 percent on Tuesday, its biggest one-day drop since May 24.
Gold futures for August delivery inched up 0.31 percent to $1,339.20 an ounce, after falling 1.6 percent in the previous session.
Whenever there is some short-term pressure, a range of $1,330 could be a very good entry point for people who have been bullish, but hesitant of chasing the prices, said Mark To, head of research at Hong Kong's Wing Fung Financial Group.