US gold bounces, ends higher on dollar-hedge buying

U.S. gold futures ended higher on Tuesday, rebounding from the previous session's sell-off based on doubts about economic recovery, and the strength of the dollar could set the tone for bullion in the near term.

GOLD

* December gold GCZ9 settled up $3.40 at $939.20 an ounce on the COMEX division of the New York Mercantile Exchange.

* Trading in a tight $6 range from $935 to $941.60.

* Gold rose amid a mixed bag of news as the dollar weakened and the U.S. producer price index fell more than expected in
July - Miguel Perez-Santalla, vice president of sales at Heraeus Precious Metals Management.

* The dollar is still the primary world currency, and the gold market's near-term direction could depend on its
interactions with the currency market and the overall economic sentiment - Perez-Santalla.

* The inverse relationship between gold and the dollar has been reasserting itself. Earlier this year, the traditional
link broke down because both assets benefited from a flight to safety amid economic fears - analysts.

* COMEX estimated final gold volume at 49,512 lots.

* Spot gold XAU= at $938.15 an ounce at 3:20 p.m. EDT (1920 GMT), against $932.80 in late Monday dealings in New
York.

* London afternoon gold fix XAUFIX= at $935 an ounce.

http://www.reuters.com/article/usDollarRpt/idUSN1843489020090818