Gold rebounded on Wednesday as global shares turned lower after a fall in oil prices, shrugging off a steadier dollar following better-than-expected U.S. economic data.

Bullion, seen as a shelter for risk-averse investors, has rallied about 16 percent this year in the face of tumbling equities and fears of a global economic slowdown.

"We are still in the phase of investors filling their boots and that means the retracement we are seeing in gold is likely to be used as a buying opportunity," Saxo Bank senior manager Ole Hansen said.

On Wednesday, gold had started the day on the back foot along with other assets perceived as safer, including the Japanese yen, due to a rally in stock markets.

But a retreat in stocks after oil prices slipped generated renewed demand for the metal.

Gold rebounded even as the dollar gained 0.1 percent against a basket of currencies, after data showed the U.S. private employers added 214,000 jobs in February, above economists' expectations.

Investors will be watching more U.S. data to gauge the impact on stocks and the Federal Reserve's monetary policy, with the most important release being non-farm payrolls on Friday.

Gold futures for March delivery rose to $1241,40 per ounce.