LONDON, Aug 30: Gold prices drifted lower in Europe on Tuesday and although near record-high oil prices propped up the market, it remained vulnerable due to hefty long positions held by funds, traders said.

Analysts said although historically gold prices did not show a particularly strong correlation with oil, some investors still buy the precious metal as a hedge against potential inflation.

Spot gold dipped to $435.20/436.00 a troy ounce, down a little from late levels in New York on Monday of $435.40/436.15.—Reuters