But gold remained under pressure because of falling prices of base metals, they said.
"There is relatively strong support at $600 an ounce, but if you have got a sell-off of base metals across the board, then it would be relatively difficult for gold to be isolated from that," said Michael Widmer, metals analyst at Calyon Corporate and Investment Bank.
"Overall, I would still say that there are more indicators for a weakness in the dollar and that should support gold prices going forward. For the rest of this year, the macro-economic picture would be probably weaker rather than stronger," he said.
Spot gold
Bullion investors were cautious because of a fall in base metals, with copper extending losses and putting other metals under pressure. [ID:nL08890893]
The dollar steadied near six-week peaks versus the euro, keeping gains made in the wake of surprisingly strong U.S. jobs and manufacturing data.
Gold often moves in the opposite direction of the dollar and is seen as a hedge against oil-led inflation.
"At these lower levels, physical demand is expected to provide some form of support, at least in front of the psychological level of $600 and again at $590," Standard Bank said in a daily report.
James Moore, metals analyst at TheBullionDesk.com, said Friday's sell-off in gold appeared a little excessive and lower prices might generate technical as well as physical buying.
But Wolfgang Wrzesniok-Rossbach, head of precious metals marketing at Germany's Heraeus, was not that positive.
"With many traders and investors being caught on the wrong foot in both markets, it seems however doubtful that they are able to provide the necessary short term support that is needed to stabilise the gold price right now," he said.
In other precious metals, silver
Platinum prices
