Gold edged higher on Thursday, after earlier dropping to a five-week low, as confusion over Greece's debt negotiations with its European lenders dominated markets, drumming up some safe-haven bids for the metal. Spot gold fell to $1,216.45 per ounce, its lowest since January 9, before recovering to trade up 0.3 percent at $1,222.30 by 0745 GMT.
The metal lost 1.2 percent on Wednesday as the dollar hit a three-week peak against a basket of major currencies on weakness in the euro and the yen. "We continue to see a conflicted gold market with the market split between bears and bulls as the US dollar strength improves against global economic issues and safe-haven demand," said ANZ analyst Victor Thianpiriya.