"Physical demand from Asia continues to underpin the market at present, with gold continuing to consolidate for the time being between $1,250-75," MKS PAMP Group trader Sam Laughlin said.
Spot gold was up 0.2 percent at $1,268.90 an ounce by 0729 GMT.
U.S. gold futures were up about 0.2 percent at $1,269.60 per ounce.
"While the Indian physical buying is supporting prices, the liquidation of longs last week has put some break on the upside movement and gold prices will stay within $1,260-$1,280 range for the time being," said Ronald Leung, chief dealer at Lee Cheong Gold Dealers in Hong Kong.
"The dollar is a bit stronger and there is no sign of gold going above $1,300 and we are seeing some liquidations in the ETFs," Leung said.
SPDR Gold Trust, the world's largest gold-backed exchange-traded fund, said its holdings fell 1.49 percent to 942.59 tonnes on Wednesday.
"The markets are waiting for the FOMC meeting next week and (the U.S. presidential) elections," Leung added.