Gold ended higher on Thursday after mixed U.S. economic numbers weighed on the dollar, but the metal was still seen vulnerable to further losses as investor interest remained lackluster.
The Philadelphia Fed's index showed that the mid-Atlantic region in the U.S. gained momentum in January but firms' outlooks for the months ahead worsened. Separately, U.S. consumer prices rose by the most in six months in December but were in line with expectations.
Spot gold was unchanged at $1,242 an ounce. It touched a one-month peak of $1,255 on Tuesday.
U.S. gold futures for February delivery settled $1.90 higher at $1,240.20 an ounce.
"The CPI data was in line with expectations, which may be a move in the right direction in terms of inflation picking up with economic growth," Mitsubishi analyst Jonathan Butler said.
"Maybe gold has taken a little bit of direction there but there is still a bit of selling preventing a move higher."