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Gold prices inched higher on Tuesday from an 18-month low hit in the previous session as the Turkish lira rebounded from historic lows against major currencies.
The lira recovered sharply against the dollar after the country's central bank introduced measures to boost liquidity in the market.
Spot gold was up 0.11 percent at $1,194.40 an ounce while U.S. gold futures were up 3 cents at $1,201.90 an ounce.
The dollar index eased slightly after hitting a 13-month high on Monday, buoyed by strong U.S. growth and escalating trade tensions.
Gold has been coming under selling pressure from a stronger dollar and rising Treasury yields. If Turkey contagion spreads further and spills into Europe, gold could see some fresh safe-haven demand.
