Gold prices on Tuesday hovered near their highest levels in more than five weeks, and held above the key $1 900 level, as expectations grew that the Federal Reserve could pause its rate hikes after the collapse of two big US regional banks.
Spot gold was down 0.1% at $1 910.80/oz, as of 07:26 GMT, after rising more than 2% on Monday to hit its highest since February 3.
US gold futures also fell 0.1% to $1 915.00.
"Safe-haven flows in the aftermath of the SVB's fallout, along with a pullback in hawkish rate expectations, have been supportive of gold prices' upside over the past few days," said Yeap Jun Rong, a market analyst at IG.
But some profit-taking might be triggered "as the risk environment attempts to stabilise," he added.
US officials have announced several measures to limit the fallout from the now-shuttered Silicon Valley Bank, the largest bank failure since the 2008 financial crisis, and restore investor confidence in the banking system. Regulators closed New York-based Signature Bank on Sunday.
Markets are now pricing in a 51.4% chance of the Fed holding rates in the current range of 4.5% to 4.75%.
Considered a hedge against economic uncertainties, zero-yield gold also becomes a more attractive bet in a low interest rate environment.
"The short (-term) outlook for gold looks strong," analysts at ANZ said in a note, adding that the metal had jumped above its 50-day moving average, signalling a change in momentum.
"With investor allocation relatively low, we expect this to continue," they said.
The US consumer price index (CPI) report due at 12:30 GMT will be closely watched for cues on the Fed's rate-hike plan.
The dollar index was up 0.3%, making bullion more expensive for buyers holding other currencies.
Spot silver fell 0.1% to $21.78/oz, platinum lost 0.5% at $991.29 and palladium shed 0.7% at $1 463.54.