Without any meaningful shift in investor sentiment and given the positive macroeconomic outlook, gold's rally may be temporary, analysts said.
"It could be pushed towards the mid-$1,400s but I have my doubts that we are back in a bull market," said Sean Corrigan, chief investment officer at asset manager Diapason.
Corrigan said Diapason's portfolio had a gold component but there were no plans to increase that.
Gold premiums in India, the world's second-biggest consumer of the metal after China, recovered 21 percent to $75 an ounce on London prices from a four-month low as the federal government kept import duty steady at a record 10 percent.
India's finance minister said on Monday that the government would look into relaxing gold imports curbs, but did not announce any immediate change.
Buying in China rose, with premiums for 99.99 percent purity gold on the Shanghai Gold Exchange up to about $7 from $5.50 on Friday, though volumes were lower.
(Read more: Is India going back to bullion?)
Silver climbed to its highest since November at $21.96 an ounce, before paring gains to be up 1.4 percent at $21.77. The metal has gained 12 percent this year.
Platinum fell 0.1 percent to $1,426.25 an ounce, while palladium gained 0.4 percent to $737.25 an ounce.