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Gold prices edged up on Tuesday as the dollar weakened, but gains were capped as Asian shares recovered from two-month lows.

Investors looking ahead to data on U.S. consumer prices for indications on the likely path of Federal Reserve interest rate moves this year.

Billionaire George Soros cut his firm’s investments in U.S. stocks by more than a third in the first quarter and bought a $264 million stake in the world’s biggest bullion producer Barrick Gold Corp.

The value of Soros Fund Management’s publicly disclosed holdings dropped by 37 percent to $3.5 billion as of the end of the last quarter, according to a government filing Monday. Soros acquired 1.7 percent of Barrick, making it the firm’s biggest U.S.-listed holding. Soros also disclosed owning call options on 1.05 million shares in the SPDR Gold Trust, an exchange-traded fund that tracks the price of gold.

Soros’s former chief strategist, billionaire investor Stan Druckenmiller, is also bullish on gold. Earlier this month he called gold his largest currency allocation as central bankers experiment with the “absurd notion of negative interest rates.”

"There is more of a positive tone to rhetoric on the gold price outlook that may affect prices, but eventually it is the U.S. dollar that is the key driver," said analyst Helen Lau of Argonaut Securities in Hong Kong.

"Investor flows into ETFs (exchange traded funds) remain pretty strong and that just shows any dips we are seeing in the gold market seem to be a relatively short, with investors taking the opportunity to hold on to their long positions," said analyst Daniel Hynes at ANZ in Sydney.

Reference: REUTERS,BLOOMBERG