Gold eased early on Wednesday but managed to retain most of its overnight gains to trade close to the key $1,200-an-ounce level on a weaker dollar.
Spot gold had slipped 0.3 percent to $1,194.20 an ounce by 0027 GMT. The metal jumped to a near three-week high of $1,204.70 on Tuesday and closed up about 1 percent.
Gold got a boost from a softer dollar, which fell against the euro on a better than expected survey of German sentiment. Investors are eyeing the Bank of Japan’s policy meeting later today to see how the greenback and yen will be impacted.