US Fed Reserve Chair Janet Yellen's testimony to Congress could drive US dollar higher, denting demand for gold.
Gold prices hinge on dollar and negotiations over Greece financial situation.
India reclaimed the top spot from China in 2014.
Upbeat US January jobs report will compel market to focus on US economy, the greenback and US interest rates.
Spot gold prices have gained some 10% so far this year.
New Delhi could cut India's record high gold import duty in the budget to be presented on 28 February.
Gold prices have gained some 9% so far this year on safe-haven buying.
Gold up to four-month high while palladium down to three-month low
Markets to track the ECB's monetary policy decision, due out on 22 January, to see how it influences gold prices.
Gold prices have gained over 6% so far this month amid volatility in financial markets, triggered by SNB decision.
Gold has to break $1255-$1270 region to delay hitting $1000.
US gold futures for delivery in February have added 2.7% from the 2 January opening price.
Asian demand and US dollar strength to influence the price of the yellow metal in 2015.
Gold prices could struggle in the short term and could even break below the 2014 lows in the coming months.
Gold prices could destabilise over the holidays if the Russian economy deteriorated further.