"Dip buyers returned to markets as China reopened this morning," said Priyanka Sachdeva, an analyst at Phillip Nova. A stronger dollar today will likely keep a lid on further upward momentum for gold, she added.
Gold extended gains - following a surge of almost 3% on Monday - as the world's biggest bullion buyer came back from holiday, boosting demand despite a firmer dollar.
The precious metal rose as much as 1.6% to above US$3,387 ($4,382) an ounce as China returned from a five-day break. Buyers have been piling into gold on the conviction that it's record-setting rally still has room to run.
