Among currencies, sterling rose from 31-year lows against the dollar while the euro climbed 0.57 percent against the U.S. currency.
Investors also sought lower-rated euro zone bonds on Tuesday, venturing from the safety of German benchmarks as they bet on action from the European Central Bank to shore up the bloc after the Brexit vote.
"If we have news that there is stress in the financial system, which might make people think we are moving into a Lehman-like moment, that could trigger higher gold prices," Julius Baer analyst Carsten Menke said.
"But as long as we do not see these indicators of systemic stress, gold should stay rather rangebound at these higher levels."
Holdings in SPDR Gold Trust, the world's largest gold-backed exchange-traded fund, climbed by another 13 tonnes on Monday to 947.38 tonnes, the highest since July 2013.
Among other precious metals, spot silver was up 0.5 percent at $17.81 an ounce, spot platinum was down 0.23 percent at $971.75 and spot palladium was 2.43 percent higher at $568.47.