Gold edged up on Tuesday in holiday-thinned trade on the back of a weaker dollar but remained in a tight range as investors awaited cues on the outlook of the US economy and potential policy moves in the world's largest economy.
Investors are looking for clues on policy direction from the minutes of the last US Federal Reserve policy meeting, due on Tuesday, although Fed officials on Monday signalled little appetite for further monetary steps to stimulate US growth in an economy that is gradually strengthening.
US factory orders due later in the day, as well as a key US employment market report scheduled for release later in the week, are expected to provide some indication on the well-being of the US economy and the necessity for further monetary easing.
Investors were also digesting the disparity between the largely upbeat manufacturing data from the United States and China, and numbers showing a mild recession in the euro zone.
Bullion prices have been trapped between $1,630 and $1,700 since mid-March, as sluggish physical demand provided little momentum.
"People are watching for signs of possible monetary policy moves in the United States, as well as the moves in the currency market," said Ronald Leung, a dealer at Lee Cheong Gold Dealers in Hong Kong.
The dollar index dropped to a one-month low earlier in the day, making dollar-priced commodities more attractive for buyers holding other currencies.
Spot gold edged up 0.1% to $1,679.09 an ounce by 0325 GMT. US gold was little changed at $1,681.20.
Technical analysis suggested that gold could clear a resistance at $1,687 an ounce and rise towards $1,697 during the day, said Reuters market analyst Wang Tao.
Little physical market activities were reported, as China's markets are still shut for a public holiday while India's ongoing strike among jewellers dampened gold imports.
Potentially supportive of platinum group metals, US auto sales are expected to continue at a strong pace in March, capping the best quarter in four years for new vehicle purchases as the overall US economy improved and new car buyers found easier financing.
Platinum stood at a discount of about $20 below gold prices, after reversing to a premium in March.
"Physical demand for platinum is still weak as some uncertainties remain in the global economy," said a Tokyo-based trader.
Platinum and palladium are widely used in producing autocatalysts, and therefore prone to weakness in economic growth.
Spot platinum gained 1% to $1,660.99 an ounce. Prices have risen 19% so far this year, outstripping gold's 7% ascent.
Spot palladium rose 1.4% to $659.25.