Gold edged higher on Tuesday in response to losses in the dollar after disappointing U.S. data and also as uncertainty persisted over whether a high-level meeting on Greece's debt crisis might lead to a significant breakthrough.
Spot gold rose 0.4 percent to $1,194 an ounce, while U.S. gold futures for August delivery rose $5.70 to settle at $1,194.40 an ounce.
It had climbed above $1,200 for the first time in a week in the previous session but failed to hold its gains on mixed U.S. economic data, which kept alive expectations the Fed will raise rates later this year from record lows. Higher rates would reduce demand for non-interest-paying bullion.
"It's definitely, in my opinion, a reflection of the euro-dollar developments of today," said Trey Reik, precious metal strategist for Sprott Assett Management USA, in Connecticut.
"I am a bit concerned that gold's not doing a little better today because these are fairly ideal conditions. Gold markets are very fragile and shallow right now."