Gold edged higher in Europe on Tuesday afternoon, helped by a firmer euro after news that the giant US services sector grew more slowly than expected in September, dealers said.
Dealers said the dollar/euro was providing a key lead for prices with underlying support from fears of inflation sparked by strong oil prices pushing back over $50 a barrel.
Spot gold moved up to $415.25/416.00 per troy ounce by 1420 GMT, against $413.80/414.55 quoted in New York late on Monday.
After rallying to a fresh 5-1/2 month peak just shy of $420 last week, bullion fell heavily as the dollar fought higher against the euro - making gold more expensive for non-US investors.
The euro rose above $1.23 after the US Institute for Supply Management (ISM) released a survey showing that growth in the US services sector slowed in September, with a significant decrease in prices paid.
"Eyes are on the dollar/euro right now for gold and silver after yesterday's action. It's probably too early to tell whether the real rally in gold is over yet - the market looks like it may trade in a $412-420 range for the time being," one dealer said.
Platinum prices regained some poise after diving more than $40 on Monday on fund selling as the market ignored news from the world's biggest producer Angloplat that a strike there was affecting output.
Spot platinum stood at $831.00/836.00 compared with $826.00/830.00 in New York on Monday.
"People ignored the Angloplat news because the strike there is only a couple of days old, these levels are seen as good buying opportunities but people are nervous because the price came off so much," another dealer said.
The world's two biggest platinum producers said on Tuesday they were going back to the negotiating table to try to end strikes that started last week.
The world's second biggest platinum producer Implats said talks had been held on Tuesday morning and Angloplat said discussions were due later in the day.
On gold, traders were awaiting more US data this week for their impact on the dollar. The most closely-watched non-farm payrolls report is due on Friday.
Federal Reserve Chairman Greenspan is due to speak again on Thursday, fuelling hopes among dollar bulls that he will paint an upbeat economic picture.
Alexander Zumpfe of Dresdner Kleinwort Wasserstein said in a daily report that further selling on gold could not be ruled out after Monday's selling stalled upward momentum.
"Additionally, the persistent high oil price level should prevent a more significant sell-off in gold. Initial support is now located at $410, while resistance is at $416 and then $418," he said.
Silver was firm in line with gold at $6.79/6.82 from $6.72/6.75 previously, while palladium stood at $214.00/218.00 from $215.00/219.00.