Gold was stuck in tight ranges on Thursday afternoon in Europe with slight pressure from a firmer dollar pinning the metal below resistance at $420 per ounce, dealers said.
The possibility of further gains remained, however, as inflationary fears fanned by record high oil prices at $53 a barrel recalled gold's safe-haven role.
Spot gold stood at $417.40/418.20 by 1440 GMT, compared with $417.75/418.50 quoted late in New York on Wednesday. The euro was last at $1.2288.
"Gold is really dominated by the euro/dollar today and because that's in ranges, so are we," one bullion dealer said.
The dollar edged up against the euro - making gold less affordable for non-US investors - after a report showed first-time claims for US unemployment dropped steeply, focusing attention on Friday's US payrolls report for further direction.
Dealers were also watching out for Fed chairman Alan Greenspan's speech at 1830 GMT for his assessment of US economic recovery.
Analysts were still keeping faith with an overall uptrend that had seen gold score near-six-month highs just above $420.
"Overall gold seems comfortable trading around its current levels and still has the potential to move higher, with $430 set to become the next target once $425 is cleared," James Moore of Thebulliondesk.com said in a daily report.
Silver was firm after hitting a peak of $7.23 - its highest since April - as funds spread their purchases on strength in precious and base metals.
Spot silver was last at $7.21/7.24, against $7.20/7.23 late on Wednesday in New York.
Platinum was almost flat at $841.00/846.00 from $841.50/846.50 in New York, with support from strike action at the world's two biggest producers Angloplat and Implats.
South Africa's National Union of Mineworkers said on Thursday it saw a good chance for a deal to end the Angloplat strike.
Palladium rose to $230.50/235.50 from $221.00/$227.00.