Gold edged higher on Wednesday, recovering from a 2.5 percent fall the previous day as the market reassessed a surprise rate hike by China. Spot gold gained nearly 0.3 percent to $1,340 an ounce by 0515 GMT. It fell to a two-week low of $1,334.45 on Tuesday, dropping by its most since early July and more than $50 below an all-time high of $1,387.10 hit last week.