Gold higher on dollar retreat

Gold prices recover a bit of lost ground Wednesday as a retreat in the US dollar from the previous session's 14-year peak prompted some buyers to hunt bargains.

Bullion for delivery in February, the most active contract on the Comex market in New York, was recently up 0.4% at $1.137.60.

The precious metal has fallen 6.2% over the past month, pushed down by a rising dollar and a interest rates hike by the Federal Reserve.

Gold higher on dollar retreat

(Source: Kitco Live Charts.)

Higher interest rates boosts the value of the dollar and makes gold less attractive as an investment because the metal is not yield-producing.

The other precious metals were mixed. Silver was up 0.3% at $16.16 per ounce, platinum was down 1% at $915.20 an ounce, and palladium was down 1.7% at $659.75 an ounce.

Despite the weak performance of recent weeks, gold and silver are poised for their first yearly gains since 2012.