Gold managed a modest gain on Wednesday, settling above a key technical support level of $1,275 an ounce, though the metal is vulnerable to further losses as investor demand remains slack, analysts said.
The bullion market found some support after Commerce Department data showed sales of new U.S. single-family homes tumbled to their lowest level in eight months in March, dealing a setback to the housing market recovery.
Earlier, gold traded in a less than $10 range, holding above its 100-day moving average of $1,277 an ounce, after the previous session's fall to a 2-1/2-month low near that level.