(Bloomberg) -- Gold rebounded from a four-month low to the highest level in almost a week as the dollar weakened and lower prices spurred demand in China, the second-largest consumer, countering outflows from exchange-traded products.

Bullion for immediate delivery rose as much as 0.6 percent to $1,258.30 an ounce, the highest level since Nov. 20, before trading at $1,254.34 by 3:56 p.m. in Singapore. Prices touched $1,225.55 yesterday, the lowest since July 8, as an accord between Iran and world powers damped demand for haven assets.

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