Gold, though little changed in early Asian trade, is seen to lose its shimmer and prices may reach the $1,200 per ounce because investors are now keener to invest in other riskier assets.

Positive signs of a recovering global economic activity boosts investor confidence to move out of gold, said an analyst from P.T. Century Investment Futures.

He noted: "Still, gold is likely to be supported above $1,200 level due to the dollar's weakness."

A significant development in Asian trading floor this morning is Singapore's announcement that economy expanded at a 26 percent annual pace in the second quarter after a record surge in the previous three months, the trade ministry said.

Bloomberg TV reported that the bullion has risen 10 percent this year, touching a record in June, as investors sought a shelter from the prospect of currency debasement and on concern that the global economic recovery may falter. Holdings in the SPDR Gold Trust, the biggest exchange-traded fund backed by bullion, were unchanged at 1,314.82 metric tons yesterday, the company's website showed.

A Singapore-based analyst at Phillip Futures Pte said: "This trading range is likely to be maintained in the near term as investors await results from the earnings season to shed more light on the economic recovery."

Gold for August delivery in New York fell 0.2 percent to $1,211.30 an ounce. Silver for immediate delivery was little changed at $18.2475 an ounce, while platinum and palladium were also little changed at $1,528.25 an ounce and $463.75 an ounce respectively.