Gold prices climbed for a second day on Tuesday, buoyed by an easing US dollar and physical buying in Asia. Spot gold was up 0.3 percent at $1,217.35 an ounce by 0628 GMT. The previous day, it advanced 0.4 percent to snap three sessions of losses. US gold futures were up 0.64 percent at $1,217.50 per ounce, after earlier rising as high as $1,220.90.
"Gold prices have factored in the December (US rate hike) move. Now it is a matter of bargain-hunting," said Spencer Campbell, general manager with Kaloti Precious Metals in Singapore. "We are seeing a lot of activity in Southeast Asia. The drop in prices and inverse pricing against the local currency are driving the buying." Gold has fallen more than $120 an ounce from its post-US election peak on November 9 as US Treasury yields posted their biggest two-week rise in more than five years and the dollar shot higher. "Gold kept its head above water, with technical-based buying supporting the market. However, with the market increasing bets on a December rate hike in the US, this buying is unlikely to persist in the short term," ANZ analysts said in a note."