Spot gold edged down on Tuesday, under the weight of a stronger dollar as a short squeeze boosted the greenback, and a weak technical picture cast a shadow on gold's short-term outlook. The dollar was bought back broadly on a flurry of stop-loss buying and short-covering by macro funds, while the euro was set to snap a six-day winning streak.
A stronger greenback makes dollar-denominated gold more expensive for buyers who hold other currencies. The technical picture suggested a lack of momentum in bullion, although physical buying by Asian countries, including Thailand and Indonesia, helped support prices.
Spot gold inched down 0.1 percent to $1,493.70 an ounce by 0617 GMT. "We have seen a lot of interest below $1,500, but it is not enough to bring prices back above the level," said Dominic Schnider, an analyst at UBS Wealth Management. In the short term, gold's technical signals were seen neutral after prices failed to drop in the previous session, and prices were expected to range between $1,479 and $1,514, said Reuters market analyst Wang Tao. Since June 27, spot gold has traded in a range of $1,478.01 to $1,513.71 an ounce.
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