Gold steadied in Europe on Thursday as the euro arrested its slide against the dollar, with bargain hunting and technical support helping the metal stabilise after the previous session's 1.2 per cent fall.
Spot gold was bid at $1,107.90 an ounce at 1010 GMT, against $1,107.85 late in New York on Wednesday.
US gold futures for April delivery on the Comex division of the New York Mercantile Exchange rose 10 cents to $1,108.20.
Prices have found good technical support at around $1,104 an ounce, and the metal has run into solid buying interest on the dips as investors take advantage of low prices to buy.
'Demand is certainly visible in the $1,101-1,105 range, and that is probably helping the metal for a immediate crash,' said Pradeep Unni, senior analyst at Richcomm Global Services. 'We hear there are lot of buy orders at levels below $1,100.'
'As long we don't find any clarity with respect to Greece and neighbouring nations, gold will continue to fight bearish pressure,' Unni added.
The metal is likely to find a floor around, or just below, current levels, traders say. With euro and sterling priced gold still near record highs, current dollar gold prices represent relatively good value for buyers, analysts say.
The chief executive of the world's number three gold miner, Anglogold Ashanti said on Monday the company viewed price dips below $1,100 an ounce as an opportunity to accelerate buybacks of its outstanding hedged positions.
Holdings of the world's largest gold-backed exchange-traded fund, New York's SPDR Gold Trust, fell by 0.609 tonnes on Wednesday, almost the same amount by which they rose at the end of last week.-Reuters
