Gold was steady near a two-month high on Monday, looking set for a second straight quarterly gain after world political tensions bolstered demand for the metal.
Investors were awaiting U.S. jobs data and the European Central Bank (ECB) meeting later this week for clues on future monetary stimulus strategy before placing any big bets.
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The dollar remained under pressure awaiting this week's busy calendar of U.S. data, which includes the June non-farm payrolls report on Thursday, a day earlier than usual due to the July 4 Independence Day holiday.
"There is a lot of U.S. data this week......a strong number from the nonfarm payrolls on Thursday should lift the dollar and U.S. yields higher, suggesting a bit more headwind for gold," Societe Generale analyst Robin Bhar said.
"The geopolitical factor is one that it's not easy to predict and that could keep gold above $1,300 just on its own."
Spot gold was down 0.2 percent at $1,312.50 an ounce by 1151 GMT, having hit a two-month high of $1,325.90 last week.
The metal has gained 2.4 percent in the second quarter of the year, after rising nearly 7 percent in the previous quarter.
U.S. gold futures for August delivery were down 0.5 percent at $1,313.30 an ounce.
In wider markets, the dollar struggled to get off a one-month low against a basket of major currencies early on Monday, following its biggest weekly fall in over two months after a batch of disappointing U.S. data.
Gold was also supported by escalating violence in the Middle East. Iraq's army sent tanks and armored vehicles to try to dislodge insurgents from the northern city of Tikrit on Sunday, the second day of a pushback against a Sunni militant takeover of large stretches of Iraq.
Fighting also flared between Ukrainian forces and pro-Russian separatists around the eastern flashpoint city of Slaviansk on Sunday, despite a truce extended until Monday night, a deadline also set by EU leaders considering new sanctions against Russia.
In times of political or financial trouble investors often turn to gold, which can be perceived as insurance against risk.
As a gauge of investor sentiment, hedge funds and money managers sharply increased their bullish bets in gold futures and options to their highest since March, data from the Commodity Futures Trading Commission showed.
Other precious metals, silver, platinum and palladium were all headed for their second straight quarterly gains.
Silver fell 1.1 percent on Monday to $20.79 an ounce, but was up 5.5 percent for the quarter.
Platinum rose 0.1 percent to $1,473.20 an ounce, while palladium was up 0.4 percent at $841.85 an ounce.
South Africa's Anglo American Platinum said on Monday it was reviewing options for its Rustenburg operation, which was hit by a crippling five-month strike that ended last week.