Gold rose above $1,200 an ounce, boosted by firmer oil prices on Wednesday that prompted investors to shuffle positions in a volatile market.
The metal had fallen to a near-three-week low on Monday after Switzerland voted against a proposal to boost its gold reserves. It then managed a recovery to its highest in a month, as oil prices recovered from a five-year low.
The SPDR Gold Trust, the world's top gold-backed exchange-traded fund, saw inflows of 2.4 metric tons on Tuesday.
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``There is some position reshuffling ... due to the level of volatility we have seen in the past few sessions,'' Julius Baer analyst Carsten Menke said.
``I wouldn't read too much into it, though, because the key drivers in the medium to longer term are the recovering U.S. economy and expected rate hikes next year, which should dent investor demand for gold.''
Spot gold was up 0.9 percent at $1,210 an ounce, having fallen 1 percent in the previous session on a bouncing dollar and diving crude prices.