Gold slipped in slow trade on Tuesday as uncertainties over a bailout package for debt-stricken Greece looked likely to undermine the euro and burnish the US dollar's safe-haven appeal.
Bullion jumped to its highest in nearly a week on Monday before losing ground to track a weaker euro, with dealers expecting the metal to trade in a narrow range before the release of the potentially market-moving US jobless data on Friday.
Spot gold was at $1,115.80 an ounce by 0657 GMT, down $2.60 from New York's notional close on Monday, when it rose to its highest in almost a week at $1,123.30 on bargain hunting driven by early gains in the euro.
Gold, which gained 2 per cent last month, was struggling to revisit a 1-month high around $1,130 hit in late February and may need to clear a January high around $1,150 to sustain gains, dealers said.
'It seems that gold is consolidating above $1,100. If we break $1,150, maybe we will see more movements upward,' said Ronald Leung, director of Lee Cheong Gold Dealers in Hong Kong.
'Nobody wants to commit to anything. Gold may be locked in a range,' said Leung, adding that investors would closely watch movements in euro.
In the physical market, sales of gold scrap picked up in Southeast Asia due to recent gains in bullion prices, while India was on the sidelines despite the approaching wedding season.
Sterling-priced gold was trading below Monday's record around 753 pounds, while bullion in euro terms held near a lifetime high struck two weeks ago.
US gold futures for April delivery fell $2.5 an ounce to $1,115.8, having traded in a narrow range on Monday.
'Gold seems to be lacking momentum to go anywhere. It's still a range trade of $1,100 to $1,130,' said the dealer, referring to a 1-month high hit last week.
The world's largest gold-backed exchange-traded fund, SPDR Gold Trust, said its holdings stood at 1,106.987 tonnes by March 1, unchanged from the previous business day.-Reuters
