Gold hits over three-week high on dollar weakness

Reuters: Gold prices edged up on Tuesday to more than a three-week high on a weaker dollar, while palladium hit its highest since 2001 February.

Spot gold was trading 0.3% higher at $ 1,278.04 per ounce at 0715 GMT, after hitting its highest level since 1 December at $ 1,279.19.

US gold futures rose 0.3% to $ 1,282.50 an ounce.

Anemic US consumption data on Friday helped gold, while the dollar remained under pressure in thin trading in Asia, said Jeffrey Halley, senior market analyst at OANDA.

The dollar index, which tracks the greenback against a basket of six major rivals, edged down 0.1% to 93.273.

Last week, gold posted its second consecutive weekly gain and closed above its 200-day moving average, a key technical indicator.