Gold prices edged up on Wednesday as buoyant physical demand from major consumers China and India offset the impact of a stronger US dollar. Spot gold was up 0.3 percent at $1,162.68 an ounce by 0639 GMT. Prices touched their highest in three weeks on Tuesday at $1,163.52. US gold futures climbed 0.1 percent to $1,163.20 per ounce. "Physical demand from China and India is quite strong at the moment," said NAB analyst Vyanne Lai.
"With the upcoming Chinese New Year there is a seasonally strong period for jewellery and in India the shortage of cash has prompted some safe-haven buying from Indian consumers as source of wealth." She added that policies of President-elect Donald Trump in the United States had been stoking appetite for gold as a hedge against inflation, despite the strong US dollar.