Gold edged up to around $1,200 an ounce on Tuesday after better-than-expected U.S. economic growth data boosted the dollar only briefly and as the market looked to a Swiss referendum on central bank gold reserves for more trading cues.
A right-wing Swiss party called the Nov. 30 vote, aiming to prevent the Swiss National Bank from offloading its gold holdings and obliging it to hold at least 20 percent of its assets in gold, compared with 8 percent last month.
While opinion polls showed that support among Swiss voters for the initiative was fading, a 'yes' vote could boost prices in the longer term, traders said. The spot gold price fell to a 4-1/2-year low earlier this month.
"The polls indicate that a 'yes' vote is unlikely ... however, if it happens, we could see a short-lived reaction in the price of gold, but it's not like other central banks will follow, because it wasn't a central bank decision," Natixis analyst Bernard Dahdah said.