Gold edged higher on Wednesday after a two-day decline in the face of record dollar strength.
Spot gold rose 0.3 percent to $1,706.30 per ounce, while U.S. gold futures were up 0.2 percent at $1,717.15.
The dollar index hovered near a 20-year high amid a surge in bond yields that saw the 10-year U.S. Treasury yield jump to its highest level since June.
Equities remain subdued as investors reacted to strong U.S. services data released overnight and weaker-than-expected Chinese trade numbers released this morning.
Official data showed Chinese exports growth slowed sharply in August amid softening global demand.
Overseas shipments rose an annual 7.1 percent, compared to 18 percent growth in July, China's General Administration of Customs said. Imports growth slowed to 0.3 percent from 2.3 percent in July.
Elsewhere, German industrial output fell in July, while Eurozone Q2 GDP came in at 0.80 percent, higher than a 0.6 percent rise in the second estimate.
All eyes now turn to the European Central Bank (ECB) meeting due Thursday given talk of a faster pace of tightening.
Euro zone bond yields rose today amid increased bets on a 75-basis point rate hike from the ECB to tame record-high inflation.
