Gold keeps gains

Reuters

Singapore

Gold retained gains from a two-day rally on Tuesday, supported by a slide in the dollar, although a slump in oil prices and uncertainty over the pace of future US interest rate hikes capped the metal's advance.

While prices drew support from a big rise in assets of the top gold exchange-traded fund (ETF) late last week, a resumption in outflows this week indicated investors remained cautious.

Spot gold was little changed at $1,079.20 an ounce by 0648 GMT, after gaining 2.5 percent in the last two sessions.

The metal got a boost on Monday as the dollar fell after data from the Chicago Federal Reserve suggested the US economy grew at a below average pace in November. 

"The jump in gold-ETF demand is impressive after the string of losses over the past couple of years, but the market will likely need to see further accumulation for the rally to be extended," said HSBC analyst James Steel.