Gold cut losses on Tuesday, as the dollar turned lower after U.S. retail sales and producer prices data came in weaker than expected, but prices remained below $1,200 an ounce on higher equities.
The Commerce Department said on Tuesday retail sales increased 0.9 percent, below the 1 percent that economists polled by Reuters had forecast.
Separately, the Labor Department said its producer price index for final demand increased 0.2 percent last month. But in the 12 months through March, producer prices fell 0.8 percent, the biggest year-on-year decline since 2009.
"Retail sales were under expectations... So we are seeing a short squeeze on the back of the dollar coming off," Deutsche Boerse's MNI senior analyst Tony Walters said.
Spot gold, which had fallen 1.2 percent to its weakest level in two weeks at $1,183.68 an ounce in earlier trade, cut declines to trade down 0.4 percent at $1,193.16 at 2:26 p.m. EDT (1826 GMT).