U.S. data released on Tuesday was strong, with consumer confidence steady in July and new single-family home sales at the highest in nearly 8-1/2 years in June.
A surge in Western investment helped offset sliding Asian demand in the second quarter, GFMS analysts at Thomson Reuters said, as they hiked their gold price forecast.
Holdings of the world's largest gold-backed exchange-traded fund, SPDR Gold Shares, fell on Monday.
Top consumer China's net gold imports via main conduit Hong Kong fell 38.5 percent in June, data released on Tuesday showed.
Spot palladium extended gains, rising as much as 0.58 percent to a nine-month high of $688.50 an ounce.
"Palladium still enjoys the strongest supply/demand fundamentals (among the major precious metals)," consultancy Metals Focus said in a report.
"As a result ... the longer-term prospects for palladium prices still appear encouraging."
The platinum/palladium ratio is around the lowest since the start of 2016.
Platinum was up 1.34 percent at $1,093 an ounce, while Spot silver was up 0.36 percent at $19.60 an ounce.