Gold for December delivery was recently up 0.2% at $1,293.60 a troy ounce on the Comex division of the New York Mercantile Exchange.
The WSJ Dollar Index, which tracks the U.S. currency against 16 others, was recently down 0.2% to 86.07. A falling dollar tends to buoy gold, which is denominated in the U.S. currency and becomes less expensive to foreign investors when the dollar declines.
At the same time, many investors are waiting for Federal Reserve Chairwoman Janet Yellen's speech at the central bank's annual economic symposium at Jackson Hole, Wyo. on Friday, analysts at Kitco Metals said.
Signs that the central bank may be rethinking its plans for a third rate increase this year would likely lift gold, which struggles to compete with yield-bearing investments when borrowing costs rise.
In base metals, copper for September delivery was recently down 0.5% at $2.9730 a pound.