Analysts see $1,300 as a tough barrier in the short term, as the metal has already risen 20 percent since the start of the year, bolstered by strong physical inflows and receding prospects in the near-term of an increase in U.S. interest rates.
Gold is supported largely by expectations the next U.S. rate increase will only happen later in the year as Federal Reserve policymakers take note of challenging global economic conditions, Mark To, head of research at Wing Fung Financial Group said.
Goldman Sachs also expects "limited upside for gold pricing given the limited room for the Fed to surprise to the downside, limited room for the dollar to depreciate, and limited room for China to drive (emerging markets) currency strength to contribute to dollar weakness."
Goldman however increased its gold price forecasts for coming months, citing stronger net speculative positioning.
SPDR Gold Trust, the world's largest gold-backed exchange-traded fund, said its holdings rose 0.3 percent on Tuesday, to the highest since December 2013.
Other precious metals also advanced, with spot silver gaining 1.7 percent to $17.40 an ounce, platinum up 1.46 percent at $1,061.25 and palladium rising 0.8 percent to $605.