Gold was steady on Wednesday, fairly close to recent 11 week highs and taking a cue from the euro's march to a two month peak as investors bet that Greece would finally secure a second bailout needed to avoid default.

Receding risk aversion - reflected in rising share prices - is seen as a dampening factor for gold's safe-haven credentials, with German government bonds feeling some pressure.

But wider uncertainty on the euro zone's economic outlook was more supportive for gold, with Germany seeing the steepest drop in exports for nearly three years in December and the Bank of France saying its economy would not grow at all in the first quarter of 2012.

Simon Weeks, head of precious metals at Scotiamocatta, said bullion seemed to be caught in an identity crisis between acting as a safe haven or risk asset.

It seems that gold has gone up as a commodity along with equities and other commodities, rather than anything else. The same people who bought it after the Fed news seem to be the ones that bought it yesterday...so I'm a little skeptical on the validity of this move, he said.

By 1317 GMT, spot gold stood at $1,746.79 an ounce, up 0.1 percent after testing upper resistance at $1,751.30. U.S. gold was broadly steady at $1,748.90.

Commerzbank analyst Carsten Fritsch said the market had latched onto its commodity market fundamentals.

The positive correlation between gold and risky assets like stock markets seems to be in place after dropping temporarily on Friday, he said.

Athens tested investor's patience yet again on Tuesday by postponing a decision on whether to accept austerity and reform measures in exchange for a 130 billion euro ($172 billion) bailout from the IMF and EU.

Some analysts said gold could face a short-term pullback if Greece strikes a deal, as it may hurt the appeal of safe-haven assets, but in the long run the lingering euro zone debt crisis is expected to support sentiment.

Looking at technical analysis charts, Barclays backed a bullish outlook for the metal, seeking a move above $1,765 to confirm its view.

On physical markets, premiums on gold bars in Singapore stood around $1 an ounce over London prices, said a Singapore-based dealer.

The gold-silver ratio, which measures how many ounces of silver is needed to buy an ounce of gold, hovered above 51, its lowest level in three months. For most part of 2011, the ratio was below 46, compared to a near 30-year average of 64.

Spot silver added 0.5 percent to $34.33 an ounce, leading the precious metals complex with a nearly 24-percent gain so far this year.

Edward Meir, an analyst at INTL FCStone, said silver is facing heavy resistance around $35.70, near a previous high hit in late October.

Should silver take out this level, we will be in a technical breakout stage, possibly setting the complex up for a push to the $40 mark, he wrote in a research note.

Platinum prices were firm at $1,647.74 an ounce, while palladium rose to $707.47.

UBS said in a note to clients that there was potential for platinum to attract a South African premium due to production outages.

The ongoing production outages at Rustenburg, coupled with a risk-on macro backdrop, could see investors starting to consider the possibility of a $1,700-plus price tag, the bank said.