Seoul: Gold prices in Asia rose as the dollar had its first two-day drop against the euro and yen in two weeks, prompting investors to buy the precious metal as an alternative asset on Tuesday.
Gold for immediate delivery rose $4.53, or 0.7 per cent, to $652.30 an ounce.
The precious metal had fallen 11 per cent since reaching a 26-year high of $730.40.
The U.S. currency declined 8.3 percent against the euro and 5.1 per cent versus the yen this year, making bullion cheaper for investors buying the metal in other currencies.
The weaker dollar has contributed to the rise in investment demand for gold, sending prices to a 26-year high on May 12.
The weakening of the dollar with even weaker U.S. consumer confidence signaling slowing growth may deter the Federal Reserve from increasing the interest rates, said an industry report.
A survey conducted on May 25 and May 26 from Sydney to Chicago showed that 15 of the 30 traders, investors and analysts advised buying gold this week.
The survey report said that seven respondents were interested in selling and eight were neutral.
Gold has moved almost in lockstep with the euro's performance against the dollar this year.
Gold for August delivery rose $2.60, or 0.4 per cent, to $660 an ounce in on the Comex division of the New York Mercantile Exchange.
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