Spot gold had gained 0.2% to $1,530.60 per ounce by 0637 GMT and was set for a more than 8% gain for the month, its biggest since June 2016.
US gold futures were up 0.3% at $1,540.80.
"This is only a technical bounce. People have really considered that bullion is a safe-haven... And are using every dip as buying opportunity," said Vandana Bharti, assistant vice-president of commodity research at SMC Comtrade.
Gold slipped as much as 0.4% earlier in the session after a near 1% drop in the previous session, as positive developments around the Sino-US trade negotiations rekindled investor appetite for riskier assets.
"Last night's (Sino-US) trade war news resulted in gains in stock markets... We saw yields climb very marginally in bond markets overnights, and that prompted a little bit of a flurry of risk taking and a selloff in gold," said IG Markets analyst Kyle Rodda.
US President Donald Trump said some trade discussions were taking place on Thursday, with more talks scheduled.