But they remained positive about gold's outlook for the year.
"The market is looking pretty stable. It's moving in a range," said Costanza Jacazio, precious metals analyst at Barclays Capital in London.
""For the year, we would expect prices to benefit from a weakening of the dollar going towards the second half of the year as the macro-economic environment looks positive for gold."
On a fundamental basis, gold should also get support from the physical side, with fabrication demand seen stabilising, she said.
Spot gold
Dealers said the market would be guided by movements in the currency and oil markets.
The euro steadied near earlier 1-1/2-month lows against the dollar, a day after the European Central Bank chief Jean-Claude Trichet signalled that the next rate rise would come in March rather than February.
Gold prices often fall with a rise in the dollar as the metal becomes expensive for holders of other currencies. The metal is also seen as a hedge against oil-led inflation.
Oil bounced back from a 19-month low below $52 a barrel after a 15 percent slide in the first 11 days of the year on weak demand for heating oil and fund selling.
"The market has formed a reasonable base around the $610 level and the should trade higher," a Singapore-based metals trader said.
Dealers said gold's ability to remain relatively stable despite a slump in oil price and a rise in the dollar might boost sentiment.
Investors are awaiting the December U.S. retail sales report at 1330 GMT for clues to the strength of the U.S. economy and the dollar outlook.
In other metals, platinum
