Gold Remains Flat Above $1200 Threshold

Gold was unchanged at $1,206.35 per ounce on Tuesday after its biggest one-day jump in two months on Monday. Gold had dropped last week on a strong U.S. job reports and an even stronger dollar, but Monday saw physical demand for the metal surge.

“The dollar made gold regain the $1,200 threshold but it remains to be seen if it’s a flash in the pan and we expect the gold price to go lower again depending on what the Chinese do when they come back on Wednesday,” Commerzbank analyst Daniel Briesemann told Reuters.

U.S. gold futures traded down 0.1 percent or $1.20 at $1,206.60 an ounce.