Spot gold fell in Asian trade on Monday and was seen moving in a $405 to $415 an ounce range this week, depending on how the dollar fares against other major currencies.
A national holiday in Australia limited trading activity while many dealers in Hong Kong and Singapore had yet to return to work after the long Lunar New Year break.
"We are not in a working mood yet," said Beh Hsia Wah, a dealer at United Overseas Bank in Singapore, the entrepot for much of the bullion trade in Southeast Asia.
Dealers also said some investors were in a wait-and-see mood after Germany's Bundesbank last week requested an option to sell 600 tonnes under any future central bank gold agreement.
The current agreement is expected to be renegotiated for another five years, probably at next month's G7 meetings, before it expires in September.
Investors want to know whether the current annual sales limit of 400 tonnes will be increased and which country would ask for the same condition as Germany.
Sales above 500 tonnes a year would send bearish signals to the gold market, said dealers. Spot gold was traded at $406.00/406.75 an ounce after touching a low of $405.50.
That compared with $407.80/408.55 last quoted in New York and London's on Friday afternoon fix of $409.00.
The benchmark December gold contract on the Tokyo Commodity Exchange (TOCOM) lost 21 yen per gram to 1,385 yen in line with declines in New York.
Movements of the dollar against other main currencies dictate the price of Gold, used as an investment and adornment in Asia.
The metal touched a 15-year high of $430.50 an ounce on January 6, when the euro reached a lifetime high against the US dollar.
The dollar stood at $1.2573 to the euro, off life lows around $1.29 set two weeks ago.
The US unit was at 106.13 yen, underpinned by wariness of intervention by Japanese authorities.
Palladium, which hit a 11-month high of $250 an ounce in Asia on Friday, rebounded after heavy profit-taking in the New York market.
It was quoted at $241/246 an ounce versus $232.50/238.50 an ounce last quoted in New York. Silver stood at $6.31/6.33 and platinum at $855/860.