Gold edged higher on Thursday as a softer tone to the dollar helped to support prices, though continued outflows from bullion-backed funds showed investor sentiment remained weak as other assets like stocks rose.
A sell-off since Oct. 31 has sent gold sliding below the key technical level of $1,180 an ounce to a 4-1/2-year low of $1,131.85. It has since recovered modestly on short-covering, and demand for physical metal from price-sensitive buyers.
Spot gold was last up 0.2 percent at $1,162, while U.S. gold futures for December delivery were up $1.90 an ounce at $1,161.
The dollar was down 0.2 percent against the euro on Thursday. The U.S. unit hit session lows after New York Federal Reserve President William Dudley said any premature tightening in America's monetary policy could hurt the economic recovery.