Gold Above $1205 as Dollar’s Recovery Wanes

Gold settled higher on Wednesday as the dollar pared gains after weaker than expected U.S. economic data, although stronger European shares limited the upside.

Spot gold, lower initially, closed up $8.70 at $1,201.3 an ounce. It had fallen as much as 1.2 percent to a two-week low of $1,183.68 on Tuesday.

The dollar cut initial gains and was unchanged against a basket of currencies, after data showed U.S. industrial output fell 0.6 percent in March.