LONDON Dec 15 (Reuters) - Spot gold rose in volatile trade on Thursday, rebounding from sharp falls in the previous session as the dollar weakened, but prices hovered near 2-1/2 month lows as worries about the euro zone debt crisis prompted investors to remain cautious.
Spot gold rose 0.8 percent to $1,587.10 an ounce by 1023 GMT, having earlier hit a session high at $1,589.89.
On Wednesday, the precious metal posted its biggest one-day decline in nearly three months. (Reporting by Harpreet Bhal; editing by Jason Neely)
