Gold prices advanced in Asian trade Tuesday, on concerns of more slowness in global economic recovery, despite a strong dollar.
Gold futures for June delivery jumped $19.60, or 2.3%, to $887.50 an ounce at 10.00 a.m Singapore time while spot gold stood at $886.0 per ounce at the same time from the notional close in New York of $884.15.
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The US Dollar Index, a six-currency gauge that includes the euro and yen, climbed as much as 1% to 86.871 and has risen for five straight sessions. The index has gained 6.5% this year.
Silver futures for May delivery jumped 31.5 cents, or 2.7%, to $12.105 an ounce on Comex. The price still has tumbled 32% in the past year.
However, holdings at the world's largest gold-backed exchange-traded fund, New York's SPDR Gold Trust GLD, remained unchanged on Monday.
But the holdings fell 21.7 tones, or nearly 2 percent, on Thursday and Friday, when the Dow rallied to two-month highs.
Investment demand had helped send gold to above $1,000 an ounce in late February, after which bullion fell 14 percent to a three-month low of $864 marked late last week.
But gold's failure to break above $900 recently illustrates fading demand from investors as well as from industry and jewellery buyers.
