Gold Edges Up as Dollar Drops

Gold rose as much as 0.5 percent to $1,170.19 per ounce on Tuesday, according to Reuters, as the dollar fell slightly from its record highs. However, analysts are not optimistic about gold’s immediate future, especially given the lack of physical buying in China and India.

“Near term, the down move has been driven by technicals stemming from the sharp dollar move higher,” Saxo Bank analyst Ole Hansen told Reuters. “The sentiment is very negative again, which probably means that a move above $1,200 is needed to turn it back to neutral and to trigger short-covering.”

U.S. gold futures for December delivery were unchanged at $1,169.80 per ounce.