Gold ended the Asian session higher but has dipped as New York opened.
"There has been a bit of producer selling around in the last couple of days, so I am not too sure how much further it can do on the upside," says one London dealer.
On a technical analysis, gold bounced off its 100- and 200-day moving averages - around $612 and $617 - during yesterday's rally. Physical interest was also seen at these levels, says Reuters, when prices fell to a 7-week low on Monday.
"Our view is the Dollar is going to weaken a little more and, all things being equal, that's going to be positive for gold," says a precious metals analyst at Commerzbank Securities in New York.
Bullion is also the favorite pick for Deutsche Bank's chief metals economist, Peter Richardson, according to the Budapest Business Journal. "You have investors and speculators in the market because of the dollar," adds a dealer in Hanau, Germany. "Most of the outlooks for gold next year are pretty positive.”
Should you be buying gold now? The consensus sees little movement in the short term. It's also fixated on the Dollar price. For a different angle on what's happening right now, keep reading here...