The dollar dipped against a basket of currencies after hitting an eight-month high in the previous session.

Speculators are holding record short positions in COMEX gold futures due to a looming US interest rate hike, but this could help gold prices in the near term, said analysts.

If prices can hold above the $1,070 resistance level, more gains can be seen, said MKS Group trader James Gardiner.  

Hedge funds and money managers raised their net short position in COMEX gold to the biggest on record in the week to November 24, data showed yesterday.

Assets in SPDR Gold Trust, the world's top gold-backed exchange-traded fund, are at their lowest since September 2008.

Latest News  from Business News Desk