Gold slips even as dollar retreats

Gold futures tilted lower in American trade amid low liquidity due to the US Thanksgiving bank holiday, while the dollar index hit the lowest since October 19. 

As of 05:44 GMT, gold futures due on December 16 dipped 0.12% to $1,295.30 an ounce from the opening of $1,296.80, while the dollar index shed 0.09% to 93.13 from the opening of 93.22. 

Gold futures were buoyed this week by geopolitical tensions and dollar's slump to six-week lows, after the Federal Reserve's meeting minutes hurt prospects of rate hikes next year due to softening inflation. 

On another note, UN representative in South Korea said on Wednesday that North Korea has breached the truce signed in 1953 after one of its soldiers passed the borders to chase a defector on November 13, with the defector getting shot and injured in the incident. 

The fracas raised concerns about renewed geopolitical tensions in the Korean peninsula and raised demand on precious metals such as gold as safe havens in times of turmoil.