Investors will be watching more U.S. data to gauge the impact on stocks and the Federal Reserve's monetary policy, with the most important release being non-farm payrolls on Friday.
While gold faces firm resistance at $1,250-$1,260, "the market has built a solid and supportive base above $1,200" and there is enough risk sentiment and uncertainty to support the metal, HSBC said in a note.
"Elevated uncertainty among market participants is usually positive for gold, which is seen as a safe haven," Commerzbank analyst Daniel Briesemann said.
"Gold is definitely well supported by ETF inflows...as long as these continue, then gold should be in demand and the gold price could easily gain more ground."
Flows into bullion-backed exchange-traded funds (ETFs) continued to increase. Assets in SPDR Gold Trust, the world's top gold ETF, rose 1.15 percent on Tuesday to 786.20 tonnes, the highest since September 2014.
Among other precious metals, platinum futures rose 0.1 percent to $937.80 an ounce, while silver futures gained 1.62 percent to $14.99 and palladium dropped 0.6 percent to $512.96.