Kansas City Federal Reserve President Esther George said on Monday that U.S. interest rates were too low and signalled that she could be ready to resume her push within the Fed's rate-setting committee for increases.
Lower rates tend to boost gold prices because they cut the opportunity cost of holding non-yielding bullion while weighing on the dollar, in which the metal priced.
"Not too long ago, gold prices would have withered on prospects of higher stock prices, but not this time around; investors are thinking that the spate of monetary easing is likely to persist for some time to come, keeping both gold and equities fairly well supported," INTL FCStone said in a note.
The European Central Bank will not ease monetary policy any further at its meeting next week, according to an overwhelming majority of respondents in a Reuters poll of euro money market traders.
Silver futures were down 0.66 percent at $20.17 an ounce. Palladium futures rose 0.60 percent to $629.50.
Spot platinum, which rose to a 13-month high of $1,104.10 on Monday, fell for the first time in two weeks, down 1.09 percent at $1,087.49.