"A push above $1,240-$1,245 will be required to entice fresh interest," Sam Laughlin at MKS PAMP said in a note.
The move higher could however be derailed if U.S. stocks continue their rally, enticing investment away from gold, said Jonathan Butler at Misubishi.
"This may in hindsight look like a one-day wonder," he said. Investors were looking ahead to an address by U.S. President Donald Trump to Congress on Feb. 28.
"Currencies, the bond market, gold, will all take their cue from what he says on Tuesday," Bhar said.
More details on promised government spending, infrastructure investment or tax cuts would likely push the dollar and U.S. asset prices higher and gold lower.
"Should Trump become the feared 'unguided missile', which we still believe is unlikely, safe-haven demand would increase even more," Julius Baer analyst Carsten Menke said in a note.
In other precious metals, silver was up 0.43 percent to $18.10 an ounce. Platinum was 0.64 percent higher at $1,008.90 an ounce, and palladium gained 0.32 percent at $770.97.