Gold is currently at $1,099.60 (+0.13%). The precious metal gave up some of its earlier gains as stocks rebounded and European Central Bank President Mario Draghi hinted at policy easing in the coming months.

Physical demand in top consumers China and India remained weak.

Fundamentals remain unfavorable. The dollar is expected to do well as the Federal Reserve seems to be determined to raise rates again in 2016. Some analysts expect gold to drop below $1,000 this year.