LONDON: Gold rose back above $1,210 an ounce in Europe on Tuesday as physical demand for the precious metal recovered after last week’s price dip, and as the weaker dollar encouraged some buying.
Spot gold was bid at $1,210.15 an ounce at 1137 GMT, against $1,206.95 late in New York on Monday. US gold futures for August delivery firmed $2.30 an ounce to $1,210.00.
The metal benefited from dollar weakness, which boosts its appeal as an alternative investment and makes dollar-priced assets more expensive for other currency holders.
The dollar fell 0.3 percent versus a currency basket early on Tuesday.
The usual inverse relationship between gold and the dollar broke down earlier in the year as both benefited from extreme risk aversion.
