SINGAPORE (Commodity Online) : Gold prices recovered in Asian trade Monday, after hitting two week low last week, as equity markets eased.
Gold for immediate delivery was seen trading at $1104.01 an ounce at 11.30 a.m Singapore time while U.S. gold futures for April delivery was at $1104.21 an ounce at the same time.
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However, analysts said the precious yellow metal remained vulnerable over speculation European authorities may use their vast gold reserves to help euro zone states facing fiscal problems.
Meanwhile, world's largest gold-backed exchange-traded fund, SPDR Gold Trust said its holdings stood at 1,115.511 tones as of March 12, unchanged from the previous business day.
Holdings have stayed unchanged for three consecutive days. The dollar reversed earlier losses to edge higher, and was up 0.1 percent against a basket of currencies.
The dollar dropped to a one-month low against the euro and a two-week trough against sterling on Friday, as investors pared back large bearish bets on the two European currencies following strong euro zone economic data.
On Friday, April gold fell $6.50 to $1,101.70 an ounce while spot gold finished at $1,099.50 an once.
Gold prices have fallen 3.6 per cent since hitting a two-month high of $1, 143.30 on March 3. Gold had rallied throughout February and into early March as investors pulled out of currencies and opted for safe alternatives.
