Using the vector wave multiple-scattering method we show that a sizable photonic band gap and resonance-induced in-gap modes can be realized simultaneously in crystals composed of metal-coated dielectric spheres. The position and width of the in-gap modes can be controlled by making appropriate choices of the dielectric constant of the inner dielectric sphere and thickness of the metal-coating layer, respectively. Such properties can be very useful in making optical band filters as well as microcavity lasers if they are sustained in the presence of dissipation. The calculated transmission spectra suggest that the resonance-induced in-gap modes decrease in intensity with dissipation and exist only for good metals.