Gold reversed early gains to move further away from a seven-week high on Thursday as the dollar got some respite against the yen, dulling the metal's appeal as a hedge. Bullion, seen as an alternative investment to riskier assets such as equities, gained earlier in the session as Asian stocks dipped on global growth concerns, along with a softer dollar.
"It is good that gold is able to stay above $1,200 despite another slump in oil prices. But it is a little bit concerning we haven't been able to build on it with the dollar weakening quite a bit," said a Hong Kong-based precious metals trader. "If we stay near $1,230 for a while without making any progress, it might turn out to be bearish," the trader said. Spot gold had eased 0.2 percent to $1,224 an ounce by 0743 GMT. The metal rose to a seven-week high of $1,238.20 on Wednesday, but failed to hold on to those gains and ended the day down 0.3 percent.
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