Gold firms as dollar slides to one-month low

Gold firmed on Tuesday as the dollar slid to a one-month low against a basket of currencies after warnings from a Chinese foreign exchange official of the risks of holding too many dollars.

Spot gold was bid at $1,545.29 an ounce at 1406 GMT against $1,543.05 late in New York on Monday, having earlier risen as high as $1,550. U.S. gold futures for August delivery fell 60 cents an ounce to $1,546.60.

Pradeep Unni, senior analyst at Richcomm Global Services, said soft U.S. economic data last week had raised questions over the possible extension of quantitative easing.