Gold rose for an eighth straight session on Wednesday as a retreat in the dollar encouraged some investors to buy into the metal, while this year's leading precious metal palladium hit another near 17-year peak.
Gold prices have risen more than 3 percent over the last two weeks as the dollar, in which the metal is priced, turned lower.
Spot gold was up 0.35 percent at $1,287.70 an ounce.
U.S. gold futures for February delivery settled up 0.28 percent at $1,291.40 an ounce.
"A lack of liquidity and the weakness of the U.S. dollar are bringing more interest into the precious metals," Afshin Nabavi, head of trading at MKS in Switzerland, said. "Not everybody is
at their desks, especially last Friday and yesterday."
"We may try to test the waters around $1,300," he said.
"There seems to be a bit of physical interest coming from the Chinese side as we approach the (Lunar) New Year in February. I wouldn't be surprised if this buying continues."
The dollar fell against the euro on Wednesday. Traders said there was little news to support the euro's rise, though some investors have positioned for a possible strengthening in the single currency into the new year following a stellar 2017, its best year versus the greenback since 2003.