Gold fell marginally from an 18-year peak in Europe after trading within striking distance of the big psychological level of $500 an ounce, but analyst said the metal had the potential to rise again.
Platinum fell almost one percent from a near-26-year peak, which was just $2 away from the big round number of $1,000 an ounce, while silver eased from 19-month highs.
"Beyond this short-term volatility, I still think there is a good chance we try $500 soon," said John Reade, analyst at UBS Investment Bank. But there might be profit-taking at that level and gold prices could fall, he said.
Spot gold touched $498.75 - its highest since December 14, 1987, when it also topped $500 - before easing back. It was last quoted at $495.50/496.30 in London.
"It's just remorseless investor interest in all the metals," said Stephen Briggs, economist at SG Corporate and Investment Banking.
"The investors are just going to carry on buying. There doesn't seem to be enough reason for them not to do so."
Gold held above $500 for just one day in December 1987, while in early February 1983 it peaked at $509 before falling to around $340 by the end of that year. It hit a record high of $873 in January 1980.
Gold rose to a record high in euro terms on Monday at 426.65 euros. In terms of the British pound, gold rose to 291.79 sterling, the highest in nearly two decades.
Dealers said fund managers were keen to push gold above $500 as worries about inflation and geopolitical tensions grew. But high prices had crimped demand in Asia, especially in main consumer India.
The physical sector had lacked buying interest from jewellers because of rising prices, which cut premiums for gold bars in the key bullion trading centres of Hong Kong, Singapore and Tokyo.
In platinum group metals, spot platinum fell to $988/993 an ounce from its highest level since March 1980 of $997.00/999.99. It closed in London on Friday at $986/990.
"Platinum has probably got the strongest fundamentals out of all four precious metals at the moment. So, yes, I expect profit-taking, bit it wouldn't go very far. It will get supported," Reade said.
Silver rose to its highest since April 2004 at $8.27 but later declined to $8.18/8.20.
Palladium advanced to $262 and was quoted at $261/265, compared with $257/261 late in London on Friday.