Gold eased in Europe on Wednesday after a survey showed slightly stronger-than-expected growth in the US services sector, but remained range-bound as markets waited for key economic data later in the week.
By 1503 GMT, spot gold was quoted softer at $392.50/393.00 a troy ounce versus New York's late quote on Tuesday of $394.00/394.50.
The Institute for Supply Management's (ISM) non-manufacturing index rose to 64.8 in July from 59.9 in June, with a number above 50 indicating growth. Analysts had forecast a 61.0 reading.
A spate of healthy data from the United States boosted the dollar in recent weeks, making gold pricier for non-US investors.
However, analysts expected few bold moves from the metal before Friday's non-farm payrolls for July, which will be the last major indicator before the Federal Open Market Committee meets on August 10 to set interest rates.
"We are stuck in a range now - we either need to see a clear break through 395 on the upside or 389 on the downside," a trader said.
"I would expect we stay a bit on the supportive side, but there are no real flows going through. Payrolls on Friday is clearly the focus now," he added.
Record oil prices and their inflationary potential lent some support to the market, analysts said.
Rising oil prices could hamper economic growth and weigh on the dollar.
US oil prices struck a fresh peak above $44 a barrel on Wednesday, on continuing supply concerns.
Like gold, silver remained range-bound as markets waited for guidance from US data.
"Prices have eased back this morning towards $6.60 but the lack of upward progress is making the market increasingly vulnerable to a sharp selloff," analysts at Barclays Capital wrote in a research note.
Spot silver was steady at $6.65/6.67.
Platinum edged higher to $827.00/832.00 from $823.00/828.00, while Palladium inched up to $213.00/218.00 from $212.50/218.50.