Gold is currently at $1,118.20 (+0.12%) as investors await Fed Meeting Minutes to assess probability of a rate hike in September.

Bullion bounced away from a 5-1/2-year low and found some support above $1,100 an ounce after China devalued the yuan in an unexpected move. However analysts believe that prospects of Federal Reserve interest rates are key factors, which determine direction of gold's fluctuations.

The looming rate hike curbs demand for such non-interest-bearing safe-haven assets as gold.