Being pushed around by a volatile euro, gold prices regained some ground yesterday as worries about Europe's debt woes continued to impact the bullion. In the first trading session after Fitch downgraded Spain's credit rating on last Friday, uncertainty underpinned the market sentiment.
Spot gold hit an intraday low around $1,209 an ounce before bouncing to $1,213.90, up $1.15 from New York's notional close on Friday. The US gold futures for August delivery added $1.1 an ounce to $1,216.1 an ounce.
Volume was thin as the United States and the UK markets were closed for a holiday yesterday, but dealers expected bargain hunters to support prices. Gold hit a record of $1,248.95 in mid-May on fears euro zone credit problems were spreading.
"There is a chance for some wild movements if you get a bit of volume come in, but for the time being I wouldn't expect too much," said Darren Heathcote, head of trading at Investec Australia in Sydney, adding that bullion would be looking at currencies for direction.
SPDR Gold Trust, the world's largest gold-backed exchange-traded fund, said its holdings were unchanged at a record of 1,267.930 tonnes as of May 28.
