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Silver and platinum group metals, which see more industrial demand than gold, have been buoyed by recent upbeat data from China, where a surge of new debt appeared to be fueling a recovery in factory activity, investment and household spending.

"Gold is looking good now as there is uncertainty over oil prices and equities. But there is big resistance at $1,260," said a trader in Hong Kong.

U.S. dollar regained some ground against commodity currencies such as the Australian dollar as oil prices slid. The greenback rose 0.2 percent against a basket of currencies.

Gold has rallied 18 per cent this year as financial-market turmoil and global economic concerns drove demand for haven assets.

Silver, used mainly in industry, has risen 23 per cent this year.

"The US dollar collapse seen in recent months has been a huge boon for both gold and silver," said Angus Nicholson, a market analyst at IG Ltd in Melbourne.

"As long three out of the four biggest central banks are still in easing mode, that is still likely to provide support to gold and silver even if the US does manage to slowly to continue on its rate-hiking cycle," he said, referring to policy makers in the US, Europe, Japan and China.

Reference: Reuters, Business Times