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London: Gold pared early losses on Wednesday to rise back above $800 (Dh2,942.4) an ounce, on strong physical buying by jewellers lured by recent price falls.
Early yesterday, gold had dropped to a two-week low of $789.05 an ounce due to a strong dollar and weak oil prices, before rising to $803.00/$804.20 an ounce at 1405 GMT (6.05pm UAE time) from $804.90/$806.25 in late New York trade on Tuesday.
"Anytime the price goes below $800 an ounce, it rekindles physical interest from jewellers and other buyers," said Calyon analyst Robin Bhar.
"Consumers see these levels as very attractive, so I don't think these support levels should be seriously violated unless the dollar continues to strengthen significantly."
Strength in the dollar and a drop in oil prices has dampened the appeal of gold for investors.
With the dollar soaring to an eight-month high against the euro on Wednesday and oil prices falling, the metal's appeal has been reduced.
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