Gold steadied on Thursday after its biggest one-day drop in more than six weeks, with a retreat in the dollar arresting the slide, though moves were muted as markets await the outcome of the looming French presidential election.
Polls ahead of the French vote, which begins this weekend, give both far-right and far-left candidates a chance of making it into next month's run-off, though centrist candidate Emmanuel Macron is shown in the lead.
Spot gold was up 0.06 percent at $1,279.70 per ounce. The metal hit a five-month high of $1,295.42 on Monday before pulling back.
U.S. gold futures for June delivery inched down 40 cents to settle at $1,283.80.
"Even though momentum has been positive there are other factors preventing a quick move higher from here - the sentiment is still that there will be stronger data from the U.S., and yields will probably rise. That will likely limit the upside (for gold)," said ABN Amro analyst Georgette Boele.
Improving appetite for equities, which edged higher in Europe and the United States, was also undermining demand for gold as a haven from risk, she added.