Gold prices rose on Wednesday from an 11-day low as the US dollar eased from its recent rally.

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Gold has fallen 1.5 percent from an Aug. 28 high as currency weakness in emerging markets and concerns over global trade disputes strengthened the dollar, making bullion more expensive for buyers with other currencies.

The greenback slipped on Wednesday after a report that Germany would be ready to accept a less detailed agreement on the UK's future economic and trade ties with the EU in a bid to get a Brexit deal done. That boosted the pound and the euro.

With gold still close to a 1-1/2 year low of $1,159.96 an ounce touched last month, there is little room for prices to fall, Julius Baer analyst Carsten Menke said.

"Gold is showing signs of bottoming," he said.

Spot gold gained 0.5 percent to $1,196.40 per ounce by 1:39 p.m. EDT (1739 GMT), after falling on Tuesday to $1,189.20, the lowest since Aug. 24.

US gold futures for December delivery settled up $2.20, or 0.2 percent, at $1,201.30 per ounce, with the dollar down against a basket of major currencies.

Gold has tumbled more than 12 percent from a peak in April as the dollar rose to 14-month highs and investors turned against the metal.

An 8 percent, or 4.6 million-ounce, drop in the holdings of gold-backed exchange traded funds has also pressured the price of gold since late May, while bets by hedge funds and money managers on lower prices on the Comex exchange exceeded bets on higher prices by the most on record last month.

Such negative positioning means speculators will struggle to push prices much lower, Menke said, adding, however, that without a weaker dollar, gold would find it difficult to rise.

Trade concerns continue to support the greenback, with a deadline looming in the US-China trade dispute and a refusal by Canada to bow to key US demands in its trade talks with Washington.

Technical and momentum indicators were gold-positive, but the technical picture would remain mixed unless gold closes above $1,200.70, ScotiaMocatta analysts said.

"If we could see it break $1,215, that to me would be evidence that the sentiment on gold and the dollar is starting to turn," said Matthew Badiali, senior research analyst at Banyan Hill Research.

Meanwhile, spot silver rose 0.6 percent to $14.16 per ounce after falling to its lowest since January 2016 at $13.97 in the previous session.

Platinum gained 1.1 percent to $784.20 per ounce, while palladium declined 0.7 percent to $973.50 after touching an 11-week high of $988.47 on Tuesday.