Gold climbs as dollar weakens

BENGALURU, Feb 13 (Reuters): Gold rose for a second day on Tuesday as the dollar slipped in the face of a rebound in Asian equity markets, which dampened appetite for the US currency as a safe store of value.

A retreat in the dollar, in which the precious metal is priced, has helped gold to pull back nearly 2 per cent from last week's one-month low of $1,306.81 an ounce.

Spot gold was up 0.5 per cent at $1,329.71 by 1030 GMT, while US gold futures for April delivery rose $5.50 to $1,331.90.

While bullion is sometimes seen as a haven from risk, it benefited little last week from the slide in equities as investors moving out of stocks broadly sought refuge in the dollar, trumping other drivers.

"Gold is moving up when risk appetite is improving, and that's happening because the dollar is weakening - otherwise that should not happen," said ABN Amro analyst Georgette Boele.