LONDON: Gold rose to around $1,200 an ounce on Tuesday as the dollar was steady ahead of US economic data, and the market looked to forthcoming Swiss referendum on central bank gold reserves for more trading cues.
A right-wing Swiss party called the Nov. 30 vote, aiming to prevent the Swiss National Bank from offloading its gold holdings and obliging it to hold at least 20 percent of its assets in gold, compared with 8 percent last month.
While opinion polls showed that support among Swiss voters for the initiative was fading, a 'yes' vote could boost prices in the longer term, traders said.
The spot gold price fell to a 4-1/2-year low earlier this month.
"I don't think the Swiss vote will pass unless there a sudden upswing in the 'yes' camp the number of undecided is around 15 percent and that could swing, but I don't see it happening," Societe Generale metals analyst Robin Bhar said.
"And if it passed, it wouldn't probably lift prices immediately because the market will be wanting to know how the Swiss increase their gold: by swaps or by buying from other central banks." Spot gold was up 0.4 percent at $1,200.70 an ounce by 1015 GMT, not far from a three-week high of $1,207.70 reached on Friday after a surprise rate cut in top consumer China. US gold futures rose 0.4 percent to $1,200.80 an ounce.
The dollar index was little changed on the day after a rebound in the euro knocked it down from a 4-1/2-year high. Traders were awaiting the second release of third-quarter US gross domestic product data, which is expected to show a downward revision after an upside surprise of 3.5 percent reported in the initial release. US consumer confidence is also due. Robust economic data could lift the dollar and hurt gold by prompting the US Federal Reserve to raise interest rates sooner rather than later.
Bullion is a non-interest-bearing asset. Bullion prices were also supported by news that China's net gold imports from main conduit Hong Kong rose to 77.628 tonnes in October from 68.641 tonnes in September, as the world's biggest consumer saw strong demand for jewellery and bars.
Among other precious metals, platinum gained 1.5 percent to $1,215.50 an ounce.
Silver rose 1.4 percent to $16.67 an ounce, and palladium also ticked 0.5 percent higher to $791.22 an ounce.
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