Gold up from three-week low

BENGALURU, Feb 7 (Reuters): Gold prices rose on Wednesday as investors used dips to accumulate the yellow metal after it dropped more than one per cent to its lowest in over three weeks in the previous session.

Spot gold was up 0.3 per cent to $1,328.86 per ounce, as of 0444 GMT. Prices fell over 1 per cent to hit its lowest since Jan. 11 at $1,319.96 on Tuesday.

US gold futures mfor April delivery rose 0.2 per cent to $1,331.60 per ounce.

"Some dip-buying is coming back aggressively as the volatility index drops. Also, some good buying as the short-term US (interest) rate curve is easing off a bit," said Stephen Innes, APAC trading head for OANDA.