The metal reached a near three-week high after Fed Chairman Ben Bernanke said last week that a highly accommodative policy was needed for the near future, which supports a low interest-rate environment that increases gold's attractiveness.
But expectations remained in place that the Fed will start slowing the pace of its $85 billion of monthly bond purchases by the end of the year.
"It appears that gold is benefiting from signs that support Bernanke's attempt to calm market fears [like weak U.S. economic data]," Deutsche Bank analyst Michael Lewis said. "But I think the metal is likely to remain a bit vulnerable in a period of uncertainty before the Fed actually embarks on the stimulus exit."
(Read More: Three Reason Why the Gold Rally Will Fail)