Gold dips but holds above $1,200/oz on softer dollar

NEW YORK/LONDON (Reuters) – Gold was down a shade on Tuesday, weighed by a brief bout of selling in choppy dealings after the metal had recovered from early losses that pulled it below $1,200 an ounce.
Spot gold (XAU=) was down 0.3 percent at $1,202.95 an ounce at 3:09 p.m. EST (2009 GMT), having dropped by nearly 1 percent to a session low of $1,194.90. The market again turned lower when it dropped nearly $7 within four minutes just before 11 a.m. EST for no apparent fundamental reason, traders said.
“Prices … seem to be forming a nice technical base in the low $1,190s,” Deutsche Boerse’s MNI senior analyst Tony Walters said.
U.S. gold for April delivery (GCcv1) lost $3.80 to settle at $1,204.40 an ounce, still a 1 percent rebound from an earlier low of $1,194.60.
“Gold … clearly found some support around $1,200 at the start of this month and people are still looking at U.S. data,” NRC Commodities analyst Andrey Kryuchenkov said.
Markets will be watching Friday’s U.S. non-farm payrolls numbers and next week’s launch of outright money-printing by the European Central Bank, he added.
Technically, the market appeared weak with the 100-day moving average maintaining resistance around $1,215.

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