Gold recovered lost ground today, helped by the European Central Bank's bigger-than-expected interest rate cut, which pressured the US dollar lower.
Spot gold was fetching $US768.30 a ounce versus $US767.70 late on Thursday.
Gold found some support via the weaker US currency, which fell against the euro on Thursday as some investors lauded a bolder-than-expected interest rate cut by the ECB as a proactive step to stave off a deep recession in the 15-nation region.
However, gold's appeal as a hedge against inflation was tarnished as the broad-based commodity index Reuters/Jefferies CRB dropped overnight to a six-year low, led by a 6% fall in crude oil futures.
US gold futures for February delivery rebounded in electronic trading to $US770.60 an ounce after settling down $US5.00 at $US765.50 an ounce on the COMEX division of the New York Mercantile Exchange.
