Gold stayed higher in Europe on Wednesday afternoon, though pulled around by dollar fluctuations after US inflation data at 1330 GMT. The US December consumer price index fell 0.1 percent, which was broadly within expectations. The dollar initially fell then rallied back, triggering a mirror reaction in gold - a rise then a setback.
At 1559 the dollar was around $1.3031, having ranged between the day's high of $1.3118 and low of $1.3010.
"There was some buying interest before the data - gold overall looks supported this afternoon, although there was some profit-taking on the high," a trader said.
Spot gold pushed above $425.00 to nudge against the $427.00 level before settling back. At 1541 GMT, it was quoted at $424.50/425.25 a troy ounce, against New York's late quote on Tuesday of $423.10/423.60.
Despite the upward probe, the market is still holding within a broad band since the start of the month.
"We continue to see the metal rangebound within $420.00 and $427.00, although bearish momentum stalled to some extent with today's performance," the trader added.
Analyst James Moore of TheBullionDesk.com said that the market needs to close above the 100-day moving average (MA) at $425.60 in order to maintain gains.
"Above here resistance should be found between $430.50/$432.00, but gold is still looking set for longer-term gains as the broader geo-political picture, rising oil prices and US deficits all support the argument of holding gold."
Silver eked out modest gains in line with gold, holding at $6.64/6.67, up from $6.63/6.66 late in New York.
"Scale-up resistance ahead of $6.75 should continue to keep the metal in range between $6.50 and $6.75," Moore added.
Platinum rose to $869.00/874.00 an ounce from New York's previous $858.00/862.00, while palladium was also higher at $186.00/190.00 from $181.00/184.00.