Gold prices rise towards $1,285 an ounce

LONDON, Aug 27 (Reuters): Gold prices rose towards $1,285 an ounce on Wednesday, recovering further from the previous week's two-month low, as stocks took a breather after a 2-1/2 week rally and the dollar index retreated from 13-month highs.

Spot gold was up 0.3 per cent at $1,284.90 an ounce at 1141 GMT, extending a recovery from last week's low at $1,273.06, while U.S. gold futures for December delivery were up 70 cents an ounce at $1,285.90.

Soft German economic data and corporate results helped arrest a rally in stocks, which had climbed 6 per cent since Aug. 8, while the dollar index eased 0.2 per cent after hitting its highest in more than a year in earlier trade.