Gold prices recover from three-week low on softer dollar

Gold recovered on Thursday from a three-week low hit in the previous session as the recent fall in the metal prices and an easing dollar from multi-month highs induced some bids.

Spot gold was 0.3 percent higher at $1,217.66 per ounce at 0424 GMT, after falling for three sessions in a row. Gold touched its lowest since Oct. 11 at $1,211.52 per ounce on Wednesday.

U.S. gold futures were up 0.4 percent at $1,219.2 an ounce.

"Bargain hunters are buying on the dips. The dollar being slightly off is also helping," a Singapore-based trader said.

The dollar index, which measures the greenback against a basket of six major currencies, was down 0.3 percent after hitting a 16-month high in the previous session.

"Yesterday, a stronger dollar kept gold under pressure. The market was overdone and gold prices fell to about $1,211 ... There is some buying interest in the Asian markets at the lower levels," said Peter Fung, head of dealing at Wing Fung Precious Metals in Hong Kong.

A stronger dollar makes dollar-denominated bullion more expensive for users of other currencies.

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