Gold rose on Thursday, rising quietly above the prior session's five-week low as the dollar steadied and the 200-day moving average provided short-term support below the market. Spot gold was up 0.3 percent at $1,249.17 an ounce by 3:04 pm EDT (1904 GMT). It had added 0.3 percent in the previous session after touching a five-week low of $1,240.75.
US gold futures for August delivery settled up 0.3 percent at $1,249.40. "Today is strictly a bounce day. You can't say this is anything more than a consolidation in gold," said Bill O'Neill, co-founder of LOGIC Advisors, adding that a rise above $1,260 could attract technical buying and higher prices. World stock markets edged higher, buoyed by a modest rebound in oil prices after the commodity hit 10-month lows, while the US yield curve managed to stall its recent flattening.