"I think we are going to see fresh highs, and towards the end of the year or early next year we are going to see the $500 level," a dealer in London said.
He expected fund liquidation at regular intervals, but overall the market was set to gain.
Traders said geo-political concerns and worries about inflation and the US economy in the long term had been supporting the metal.
The latest data from US exchange authorities showed large funds were holding 20 million ounces of gold, down 1.3 million from the previous week's record level.
Dealers said gold's ability to hold above $460, along with renewed physical demand in major consuming countries, was also supporting the metal.
"As we approach this strong period for the demand side of gold, this must be making jewellery purchasers feel more comfortable buying at in the $465 territory rather than the $482 territory," said Nick Moore, global commodities analyst at ABN Amro.
He said festivals in India, the world's largest gold consumer, and the Chinese new year and Christmas buying were expected to lift physical demand.
Gold fell early on a rise in the dollar against the euro, but the US currency later lost those gains. The dollar-priced metal generally falls with a strong dollar as gold becomes costlier for other currency holders.
"Oil and the course of hurricane Wilma will be closely monitored and are likely to prove pivotal for the gold market in the week ahead," James Moore of TheBulliondesk.com said in a daily report.
Oil shed nearly a dollar on Monday, sinking below $60 a barrel after Hurricane Wilma bypassed storm-battered US oil and gas facilities in the Gulf of Mexico.
Platinum was higher at $928/932 an ounce, compared with $925/929 late in New York. Palladium was at $207/211 versus $208/212.
Silver eased to $7.69/7.72 an ounce from $7.64/7.67 late in New York.