Spot gold inched lower on Thursday but remained within striking distance of $1,100 an ounce after hitting an all-time high for the second straight session on a weak dollar the previous day.
News this week of India's purchase of 200 tonnes of gold from the International Monetary Fund has also given gold the momentum to climb back toward $1,100 per ounce.
That transaction represents about half of a long-planned IMF bullion sale, and the industry is now wondering who will be buying the rest of the IMF gold.
The governor of the Bank of Thailand told Reuters on Thursday the central bank there had no plans to buy gold from the IMF. He added that the bank does not expect official interest rates to rise this year because there are still risks to the economic recovery.
Spot gold was at $1,087.70 an ounce at 0611 GMT (1:11 a.m. EST), down 0.4 percent from New York's notional close of $1,092.35. It rose to an all-time high of $1,097.25 on Wednesday.
U.S. gold futures for December delivery were at $1,088.60 an ounce, up 0.1 percent.
Futures hit a record $1,098.50 on Wednesday.
The dollar remains under pressure after falling on Wednesday after the Federal Reserve reiterated its commitment to keep interest rates low for an extended period.
Akira Doi, a managing director at Tokyo's Daiichi Commodities Co Ltd, said gold could fall on profit-taking this month after it eventually hits $1,100.
Funds close their books in November, and one should keep in mind they may decide to pocket profits and sell this month, he said.
Noncommercial net long positions in U.S. gold futures remained near a record.
He added, however, that gold was likely to remain above $1,000 even if it is hit by profit-taking, noting that India's purchase from the IMF was made near an average of about $1,045 an ounce.
I think that fact will have a psychological impact on the market ... there is no longer any surprise in seeing a four-figure price for gold, Doi said.
Bullion also remains attractive as an alternative investment.
There is also the persistent worry about the economy to support gold, said Shuji Sugata, a manager at Mitsubishi Corp Futures Ltd.
The October U.S. non-farm payroll report -- likely to be an even more closely watched number than usual given the extent to which labor market woes fed through into U.S. consumer confidence -- is due on Friday.
The world's largest gold-backed exchange-traded fund, SPDR Gold Trust, said its holdings stood at 1,108.399 tonnes as of November 4, unchanged from the previous business day.
The world's largest silver-backed exchange-traded fund, the iShares Silver Trust, said its holdings stood at 8,740.15 tonnes as of November 4, down 3.85 tonnes or 0.04 percent from the previous business day.
Other precious metals were also a touch lower.
Spot silver was at $17.28 an ounce compared with $17.44 in New York.
Spot platinum was at $1,353.50 an ounce, down from $1,364, while sister metal palladium was at $326 versus $327.
Both metals are used as an auto catalyst to clean car exhaust fumes.
(Additional reporting by Risa Maeda; Editing by Joseph Radford)