SINGAPORE, Feb 15 (Commodity Online): Gold showed signs of recovery on thin Asian trade Monday mainly on increased physical demand from Asia.
Spot gold was seen trading at $1094.56 an ounce at 11.30 am Singapore time, extending last week's 2.5 per cent gain.
US gold futures for April delivery was at $1094.71 an ounce at the same time, up 0.4 per cent at $1094.60 an ounce.
Analysts said the precious yellow metal gained on speculation investors may seek a safe haven on concerns that budget deficits in Greece, Spain and Portugal may weaken the economic outlook for Europe.
But gains were capped due to a lack of market participants with many markets in the region closed for the Lunar New Year holiday. US markets are also closed Monday, for Presidents Day.
Hong Kong and Singapore markets resume trading Wednesday, but markets in mainland China will be closed until next Monday.
On Friday, gold prices fell as China unexpectedly increased bank-reserve requirements, sending commodities and equities lower, while boosting the dollar.
Spot gold ended at $1092.40 an ounce as gains were capped by a fall in the euro versus the dollar due to questions about a rescue deal for Greece, while China's surprise monetary tightening late last week hit risk appetite.
Spot gold is in a recovery phase after it hit a three-month trough of $1043.75 earlier this month amid fiscal fears for some European countries.
Meanwhile, the holdings by the world's largest gold-backed exchange-traded fund, SPDR Gold Trust, held steady at 1106.378 tones Friday, unchanged since February 5.
