The metal has also turned its back on oil, returning to movements of the dollar against other currencies for direction.
Spot gold was trading at $406.25/407.00 an ounce, versus $407.25/408.05 last quoted in New York on Wednesday. Fears of inflation, spurred by record high crude oil prices, propelled gold to four-month peaks near $415 an ounce last on Friday.
Gold is seen as a hedge against inflation. Gold has since fallen as oil prices retreated but the metal got some support on Wednesday, gaining around $4 an ounce in New York after worries that extremists were behind the two Russian plane crashes raised its safe-haven appeal.
"We might see a wider range in Europe, maybe within $2 an ounce. But I guess gold will be trapped in a narrow range this week ahead of the US data," said one trader in Hong Kong, a key bullion trading city in East Asia.
"The market now focuses on the dollar movements and perhaps fears of terrorist attacks," he said. The dollar was at $1.2071 per euro, compared with around $1.2083 in late US trade. Traders were awaiting US second-quarter growth data and a speech by Federal Reserve Chairman Alan Greenspan, both slated for Friday.
Gold's "love affair with the oil price appears to be over, at least for the moment, with the almost $2 a barrel fall in the price having no effect on gold price," N M Rothschild said in a report.
Oil fell $1.74 on Wednesday, the fourth straight day of losses, after official data showed weaker-then-expected gasoline demand ahead of the Labour Day holiday weekend in September.
In Tokyo the benchmark June 2005 gold contract rose 13 yen per gram to 1,438 yen, tracking gains in New York. Official data showed Japanese gold imports had risen 140 percent in July from a year to 8,655 kg, posting the fourth straight year-on-year increase due to the strength of the domestic economy that increased demand for industrial use.
But activity was generally slow in August, given the rise in gold prices and also due to the summer holiday, said some Tokyo dealers. Premiums for gold bars in Tokyo were unchanged at 50 US cents an ounce to London spot prices.
In other precious metals, spot silver was trading at $6.58/6.60 an ounce, compared with $6.59/6.62 last quoted in the US market. Platinum was volatile, touching a high of $855 an ounce before easing to $848/853 an ounce in afternoon trade.
That compared with $847/852 an ounce in New York. Sister metal palladium was at $213.50/218.50 an ounce, versus $210.50/216.50 in New York.