Gold prices remained steady after touching one month high in the previous session on fears of slowing U.S. economy which prompted safe haven buying from investors seeking an alternative investment.
Consistent fall in dollar further supported the uptrend.
Dollar index fell against a basket of currencies on faltering U.S. economic outlook. The persistent European debt crisis and MENA unrest may continue to support gold.
Greek Prime Minister George Papandreou told his cabinet on Monday, it was crucial to accept years of austerity to secure a new international bailout, a challenge for a nation already seething over corruption.
The physical demand in domestic spot market improved despite price rise as jewelers, who were waiting for a correction, made significant purchases.
The unchanged holdings in SPDR Gold Trust ETF also indicate steady investor's interest in yellow metal.
Investors are awaiting speech by Federal Reserve Chairman Ben Bernanke on the U.S. economic outlook later in the day.
