Analysts said gold's upward moves over the past 10 days have largely been driven by traders on the basis of existing options positions while the stronger Australian dollar, which saw a increase in the price of bullion in A$ terms, also motivated prices.

Macquarie Equities Ltd precious metals analysts Kamal Naqvi said gold faces stiff resistance at $298.00 a troy ounce and above that at $300.00/oz.

"Prices between $292.00/$298.00 still remains the most likely trading range. However, there does appear to be interest in testing the upper levels should a significant trigger -- another major financial shock -- occur," Naqvi said in a report.

T Hoare & Co metals analyst Rhona O'Connell said the bullion market is expected to remain subdued due to the Thanksgiving holiday in the United States which will seenmarkets closed on Thursday and Friday.

"Comex is closing early on Wednesday and it doesn't open until Monday and if anything, you might see a bit of position squaring coming through today or tomorrow which would probably take it up a little bit," O'Connell said.

But she said the market had also seen forward selling in the market at $298.00 and better which put a ceiling to the gold price.

O'Connell said gold is likely to move towards the top end of its range.

"But perhaps a little bit unreliable on Thursday and Friday because we don't have the Americans," O'Connell said.

Naqvi said gold was supported further by the recent tensions over Iraq, the cut in US interest rates, strong physical gold demand and talk of the possible introduction of a gold Euro coin.

"The Euro gold coin idea appears set to stay as a "possibly bullish" talking point in the market for several months. However, we are a long way from determining if this is the panacea that the gold bulls -- new and old -- would like, or just yetanother false dawn for gold," Naqvi added.