Gold slipped back in Europe on Monday, content to stay within a narrow $4 range as the market digested last week's run to six-week highs above $423/oz.
But traders and analysts were still bullish about further gains, as gold was being swept along in the current wave of positive sentiment surrounding commodities and luring in an ever-broader investor base.
They added that a firmer euro and high oil prices could see prices make new highs this week beyond the 15-year peak of $430.50 achieved in January.
Spot gold eased to $421.15/421.90 by 1508 GMT from $422.45/423.20 late in New York on Friday.
The market moved to its highest since early April on Friday as funds seized on a surging euro after weak US jobs data cast doubt on the pace of monetary tightening there.
"The market had an offered feel to it earlier today, but buying came in and now we're just in the middle of the day's range," one dealer said.
Analysts noted another increase in speculative long positions on New York's COMEX gold futures last week.
"Such a large fund overhang will undoubtedly put pressure on prices at some point, although probably not in the immediate future, given the renewed weakness in the dollar," Alan Williamson, metals analyst with HSBC said.
Soaring base and precious metals prices took the CRB Index of 17 commodity futures to a fresh 23 year high on Monday.
The euro weakened a little on Monday afternoon and was last at $1.2384, off Friday's high of $1.2433.
Oil prices stayed on the boil above $53 a barrel early on Monday, bolstered by persistent anxiety over Opec member Nigeria and the nearly month-long loss of a quarter of US Gulf of Mexico production.
Inflationary concerns sparked by the strong oil price have lured investors into bullion as a safe haven. Barclays Capital analyst Kamal Naqvi said he saw short-term upwards potential in gold, but still expected prices to correct back from current levels into the year-end.
Platinum firmed to $845.00/850.00, versus $841.00/845.00 in New York, while palladium slightly eased at $224.00/229.00 from $230.00/235.00.
Silver fell back in line with gold to $7.17/7.20 compared with $7.25/7.28 in the US market late on Friday.
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