Gold gains 1.5pc to 2-1/2 week highs as dollar softens

LONDON, Nov 18 (Reuters): Gold jumped 1.5 per cent to a 2-1/2 week high above $1,200 an ounce on Tuesday as the dollar softened against the euro, due partly to better-than-expected German economic data.

Spot gold was up 1.4 per cent at $1,202.40 an ounce by 1110 GMT after earlier reaching its highest since Oct. 30 at $1,204.70. US gold futures also jumped to a near three-week high of $1,204.10.

The metal has rebounded 6.4 per cent from a 4-1/2-year low of $1,131.85 hit on Nov. 7. "We are seeing a corrective bounce, but it looks like we have already done quite a lot from the $1,130 lows a couple of weeks ago," Societe Generale analyst Robin Bhar said.