Bullion prices recovered in Asian trade Thursday after record drop Wednesday in line with oil prices as dollar surged.
US gold futures for August delivery rose 0.4 per cent to $969.5 per ounce at 10.30 a.m Singapore time from $965.60 an ounce on the COMEX division of the New York Mercantile Exchange.
Silver for immediate delivery increased 0.4 percent to $15.41 an ounce after tumbling 3.9 percent Wednesday.
Both spot gold and futures fell about 2 per cent on Wednesday as commodities retreated broadly led by heavy losses in oil, the US dollar's sharp recovery amid weaker US economic indicators and steep losses on Wall Street.
Investors returned to US dollar assets as worries about the outlook for the economy and stock market declines dampened their risk appetite. The US dollar was steady against the yen and euro on Thursday.
Meanwhile, Holdings of the world's largest gold-backed exchange-traded fund, the SPDR Gold Trust, eased 1.53 tones to 1132.50 tones as of June 3, reflecting investor selling. On June 1, holdings rose to a record 1134.03 tones.
