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Gold prices edged higher on Tuesday as investors snapped up bars and coins in a wave of physical buying after the metal dropped to its lowest level in nearly six months in the previous session.

Spot gold was up 0.4 percent at $1,224.46 an ounce at 0554 GMT. The metal had slipped to its lowest since June 3 at $1,211.08 an ounce on Monday.

Demand from China buoyed prices during Asian trade, said MKS PAMP Group trader Sam Laughlin. "Support for the metal sits broadly around $1,210, while below this, the late May low around $1,200 should see strong (buying) interest."

Soros Sells Off Gold ETF, Scoops Up Energy and Emerging Markets and More Than Doubles Stake in Barrick Gold as Shares Drop.

Soros Fund Management, the firm that invests the fortune of billionaire George Soros, sold gold and bulked up on riskier sectors including energy and emerging markets during the third quarter.

The firm sold its position in SPDR Gold Shares worth $30.4 million as of June 30, according to a regulatory filing Monday. As of the same date, it increased its exposure to Japan, China and emerging markets exchange-traded funds. The firm added positions in WisdomTree Japan Hedged Equity Fund and iShares China Large-Cap ETF worth $34.1 million and $24.1 million, respectively. It also bought $91.9 million worth of iShares MSCI Emerging Markets ETF.

After selling most of his stock in Barrick Gold Corp. in the second quarter, billionaire investor George Soros more than doubled his remaining holding in the mining company.

Soros Fund Management LLC bought 1.78 million Barrick shares in the third quarter, taking total holdings to 2.85 million, according to a regulatory filing. The fund rebuilt its stake in Barrick, one of the world’s two largest gold producers, after selling 94 percent of its holdings in the second quarter to cash in on the stock’s best first-half performance ever.

Add hedge funds to the list of investors caught on the wrong end of Donald Trump’s surprise election as U.S. president.

Before the Trump victory on Nov. 8, which defied most poll-based forecasts, speculators increased bets on a bullion rally for a third straight week, data released Monday show. Since then, prices posted their biggest weekly decline in three years, touching a five-month low, and holdings in exchange-traded funds backed by gold have seen their biggest two-day outflow in three years.

Holdings in gold-backed ETFs fell 16.1 metric tons to 1,971.2 tons on Friday, capping the biggest two-day drop in three years, data compiled by Bloomberg show.

Citigroup is forecasting a stronger dollar amid higher Treasury yields into 2017, meaning the weakness in bullion may continue, particularly if inflation doesn’t materialize.

Reference: Bloomberg, Reuters