Gold bullion meandered in a narrow range in Asia on Tuesday, pausing for breath after prices rose in New York trade to levels not seen since December 1988.
Spot gold touched $424.60 an ounce in the COMEX market on Monday after the dollar hit a record low against the euro, making dollar-denominated gold a better bargain for holders of the single currency.
By 0401 GMT, spot gold stood at $423.00/423.75 an ounce compared with New York's last quoted level of $421.70/422.50.
Dealers pegged key support at $417.00 and resistance at $425.00 an ounce.
"Over time, fund profit-taking and producer sales will help apply the brakes on this rally," NM Rothschild said in a report.
"But for the time being, more upside can be expected as sentiment on the forex markets remains dollar negative with the market continuing to focus on the large (US) current account deficits and low interest rates."
The dollar hovered near recent multi-year lows against major currencies on Tuesday, weighed down by a festering US trade gap and the ongoing prospect of low US interest rates.
The dollar was at 106.12 yen, while the euro was at $1.2680 in afternoon trade.
Silver, which benefits from the strong rally in the bullion market, was trading at levels not seen since May 1998.
Spot silver was quoted at $6.19/6.21 an ounce compared with New York's last quoted level of $6.14/6.16 an ounce.
Spot platinum was quoted at $839.00/844.00 an ounce compared with New York's last quoted level of $838.00/843.00. Sister metal palladium stood at $199.00/204.00.