Gold prices firm from over 1-month low on bargain-hunting

Gold prices edged higher on Tuesday as investors resorted to bargain-hunting after the precious metal fell to over one-month lows, weighed down by a stronger dollar.

Spot gold was up 0.3 percent at $1,204.22 per ounce at 0339 GMT, having touched its lowest since Oct. 11 at $1,199.72 earlier in the session.

U.S. gold futures inched up 0.1 percent to $1,204.7 per ounce.

"It's been some time that we have seen this level, so we are seeing some buying here," said Ronald Leung, chief dealer at Lee Cheong Gold Dealers in Hong Kong.

"However, a stronger dollar has capped the market."

The dollar index, which measures the greenback against a basket of six major currencies, was sitting just shy of its 16-month high of 97.69 hit on Monday, benefiting from save-haven flows as investors shunned riskier assets because of political uncertainties in Europe, fears of a global economic slowdown and U.S.-Sino trade tensions.

A firmer greenback makes bullion expensive for holders of other currencies as the commodity is priced in dollars.

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