Gold prices held steady on Tuesday, as investors wait for European leaders to work out a strategy to solve the euro zone debt crisis at a meeting on Wednesday, while resilient physical demand from Asia also lent support.
Investors grew confident after a weekend European Union summit made some progress toward an agreement on how to contain the debt crisis, even though the final decision was deferred to a second summit on Wednesday.
"The market is very quiet as everyone is waiting for the European solution tomorrow," said Ronald Leung, a physical dealer at Lee Cheong Gold Dealers in Hong Kong, adding that a disappointing outcome could trigger a sell-off in gold and other assets.
He cautioned that even if Wednesday's meeting produced a comprehensive plan, Europe will not be out of the woods any time soon due to the size of the crisis.
