Gold prices rose for a second successive day on Thursday as investors returned to the bullion market after the precious metal touched a three-month low.
Also, physical buying in key consuming markets like India boosted the sentiment for gold following the recent reversals. Premiums for gold bars edged up in Asia.
Spot gold added as much as US$5.85, or 0.5%, to US$1,169.45 an ounce in London and was at US$1,167.15 at 10:03 a.m. local time. Prices fell yesterday as low as US$1,157.03.
Gold for December delivery was 0.6% higher at US$1,169.50 on the COMEX in New York.
On Wednesday, the yellow metal slid to the lowest level since April 27.
Separately, bullion holdings in the world’s biggest exchange-traded fund yesterday dropped the most in more than two years.
Gold has slumped 7.8% since reaching a record US$1,265.30 an ounce on June 21.
The world's largest gold-backed exchange-traded fund, SPDR Gold Trust, said that its holdings fell to 1,282.279 tons by July 28 from 1,300.829 on July 27 - their lowest since early June.
That was the biggest drop since a 20.56-ton decline in April 2008.