Gold was mostly flat on Tuesday after investors locked in profits a day after the precious metal tested an all-time high above $1,060 an ounce.
Lackluster trade in currency markets ahead of major corporate earnings kept traders from taking large gold positions as a recent rally in the precious metal has mainly been driven by a weaker dollar.
Spot gold was mostly flat at $1,055.30 per ounce at 0603 GMT. It rose as high as $1,058.75 on Monday, near a record of $1,061.20 set on October 8.
U.S. gold futures for December delivery were at $1,056.70 per ounce, down 0.08 percent from the previous settlement after rising $8.90 on Monday.
Gold is seen as being in consolidation mode now that the $1,060 mark is providing short-term technical resistance, although the overall trend will remain bullish unless gold slips below the $1,000 mark, said Dick Poon, manager of precious metals at Heraeus in Hong Kong.
"Most customers are bullish on gold. Their biggest concerns are related to the currency market. They're a bit scared of the U.S. currency," Poon said, referring to the greenback's weak fundamentals.
Hopes the U.S. Federal Reserve might raise interest rates sooner than expected faded on Monday, with the euro briefly moving back above $1.48, within striking distance of its 2009 high.
The dollar stayed on the defensive on Tuesday on expectations that robust U.S. corporate earnings would sustain risk appetite, diminishing the allure of the U.S. currency.
A weaker dollar also makes gold cheaper for non-U.S. investors, and seasonal demand from India, the world's biggest gold consumer, has been underpinning the precious metal, traders said.
India's festival season peaks with Diwali, the Hindu festival of lights, on October 19. Weddings take place during the festive period and jewelry forms an essential part of dowry baskets.
The world's largest gold-backed exchange-traded fund, the SPDR Gold Trust, said its holdings stood at 1,109.314 tons on Monday, unchanged since October 7.
