Gold higher

Bengaluru : Gold prices edged higher on Tuesday to hold just below a four-month high touched in the previous session, supported by a weaker U.S. dollar languishing near three-year lows.

Spot gold was up 0.1 percent at $1,341.28 an ounce by 0310 GMT, after touching its strongest since Sept. 8 at $1,344.44 on Monday. U.S. gold futures rose 0.5 percent to $1,341 an ounce.

"Gold seems to be moving higher on account of rising inflationary expectations and a steep drop in the dollar," said INTL FCStone analyst Edward Meir.

"We are not sure if gold could withstand the higher yield environment going into 2018, especially if the dollar eventually reverses course. In addition, we don´t see the recent spike in U.S. inflation lasting." The dollar index , which measures the greenback against a basket of currencies, fell on Monday to its lowest since December, 2014 at 90.279. It was last down 0.5 percent at 90.488.