Spot gold was unchanged at $ 1,778.53 an ounce by 01:37 GMT after falling more than 1% in the previous session.
US gold futures rose 0.2% to $ 1,779 an ounce.
Palladium rose 0.1% to $ 2,985.81 an ounce after a record high of $ 3,017.18 an ounce on Tuesday.
The supply deficit worsened after leading producer Norilsk Nickel announced disruptions at two Siberian mines due to waterlogging.
The dollar index was down 0.1% compared to its peers, making gold less expensive for holders of other currencies.
Treasury Secretary Janet Yellen said Tuesday that she sees no looming inflation problems, and downplaying previous comments, rate hikes may be needed to stem the economic overheating as President Joe Biden’s spending plans boost growth.
Higher interest rates increase the opportunity cost of owning unprofitable bullion.
The US trade deficit jumped to a record high in March amid surging domestic demand driven by imports.
The U.S. economy is growing at its fastest pace since the early 1980s, while household bank accounts are being replenished with cash issued by the federal government to mitigate the impact of the coronavirus pandemic.
Perth Mint silver sales rose in April on strong demand, while gold sales were down on lower production, the refiner said in a blog post on Tuesday.
Silver remained steady at $ 26.52 an ounce, while platinum fell 0.2% to $ 1,235.46.
DATA / EVENTS (GMT)
0750 France Markit Serv, Comp PMIs
0755 Germany Markit Services PMI
0755 Germany Markit Comp Final PMI
0800 EU Markit Serv, Comp Final PMIs
1345 US Markit Serv, Comp Final PMIs
1400 ISM N-Mfg PMI USA