Fears that the sovereign debt crisis engulfing peripheral eurozone countries could spread across the continent have seen gold rally from last week's drop of 3.6 per cent.
The gold price rose by 0.5 per cent to $1,376.20 an ounce before trading at $1,372.55 in Seoul, Bloomberg reports.
Those involved in gold trading saw the price of the commodity slide to its biggest loss since May last week with investors expecting an improved performance in the US economy to erode demand for the metal.
Darren Heathcote, head of trading at Investec Bank in Australia, told the news provider that the problems in the eurozone will mean the demand for gold is likely to remain high.
"As soon as we get more talk of problems within Europe, we are going to see some more safe-haven buying," he added.
Fears that Portugal's sovereign debt woes may spread to other vulnerable nations has seen the country come under pressure from France and Germany to seek financial assistance to reassure the markets.
