Gold slightly rebounded to $1,097.20 (+0.52%) an ounce as the dollar took a breath in its rally. The US dollar index, an indicator of greenback's strength, trades -0.10% lower at 97.53.

However most forecasts still suggest that bullion may tumble more. Analysts from Morgan Stanley said that prices may tumble significantly if China's stock markets see another correction and central banks sell their reserves. An imminent rate hike by the Federal Reserve also weighs on gold.

Physical demand remained sluggish.