Gold snapped a four-day losing streak, but gains were limited as investors sought further indicators of U.S. economic strength, including a Federal Reserve statement later in the week.
Gold edged lower on Monday as investors remained cautious ahead of an eagerly awaited U.S. Federal Reserve meeting, which should disclose more details on the Fed's quantitative easing policy.
Gold prices fell to a two-week low after the European Central Bank said banks would repay 137 billion euros ($183.2 billion) in cheap loans, which reassured investors the euro zone banking system was stabilizing.
Gold fell to a one-week low after a repeated failure to break above a key chart level hurt investors' confidence in the metal.
Gold dropped, retreating from the previous session's one-month high, as signs of an improving global economy capped investor interest in safe-haven investments.
Gold rose on Tuesday as the Bank of Japan's pledge to launch an economic stimulus effort and a five-year high in U.S. equities prompted nervous investors to buy gold.
Gold prices rose on Monday as stock markets were lifted towards two-year highs by moves to break a budget impasse in the United States, and as the euro steadied.
Gold prices firmed on Friday, tracking gains in equities and other commodities as encouraging data from China and the U.S. boosted optimism.
Gold was supported by ongoing concerns about U.S. debt talks, and as strong U.S. data fanned hopes for a strengthening recovery
Platinum rose for a seventh consecutive session, driven by strong hedge fund buying after a mine labor crisis at the world's largest platinum producer in South Africa stirred fears of a supply shortage.
Platinum rose to a three-month high on Tuesday, rallying for a sixth straight session as funds bought heavily due to a mine labor crisis in South Africa that sparked supply fears.
Gold edged up, but trailed platinum's rise, helped by gains in agricultural and energy prices.
Gold fell 1 percent on Friday, finishing nearly flat for the week, after growing inflation pressure in China dented hopes for more stimulus from the world's second-largest economy.
Gold prices topped $1,675 an ounce, rising along with the euro after the European Central Bank gave no hints on near-term rate cuts.
Gold eased in light trading, giving back some of the previous session's gains, while platinum group metals rallied as improving U.S. auto sales and a better economic outlook triggered fund buying.
Gold ended above $1,662 an ounce on Tuesday, helped by a recovery in stock markets and a rise in physical demand.
Gold dropped as uncertainty about the duration of the Federal Reserve's economic stimulus program decreased bullion's appeal as a hedge against inflation.
Gold fell on Friday, but rebounded sharply off a 4-1/2 month low after U.S. data showed job market growth has slowed, suggesting the Federal Reserve may retain its monetary stimulus in the near term.
Gold fell on signs that the Federal Reserve is increasingly concerned about the risks of the Fed's asset purchases on financial markets, which undercut bullion's appeal. .
Gold rose nearly 1 percent on Wednesday, as economic optimism fueled sharp gains on Wall Street after U.S. lawmakers clinched a last-minute deal to avoid tax hikes that threatened to send the economy back to a recession.