On Sun, 19 Feb 2017, Kaushal Modi wrote:

> OK, that was uxterm.
> But then I opened up xterm, set the env vars correctly.
> 
> Things were better (not black and white), but it was still only 256 colors, not 24bit:
Mine shows clear distinction on 'floralwhite' and 'oldlace' colors;  in 
your picture they looks pretty the same.

I assume you already have done a full bootstrap just in case.

I run in:
In GNU Emacs 26.0.50 (build 28, x86_64-pc-linux-gnu, GTK+ Version 3.22.7)
  of 2017-02-19 built
Repository revision: 861ff2ba2cfc19065b13bf9b9670b44e1496c64e

Configured features:
XPM JPEG TIFF GIF PNG RSVG IMAGEMAGICK SOUND GPM DBUS GCONF GSETTINGS
NOTIFY ACL LIBSELINUX GNUTLS LIBXML2 FREETYPE M17N_FLT LIBOTF XFT ZLIB
TOOLKIT_SCROLL_BARS GTK3 X11 LIBSYSTEMD

$ xterm -version
XTerm(327)