Gold claws back on bargain buying


Gold prices rebounded in Asian trade Friday mainly on bargain buying and euro's recovery against the dollar.

Gold for immediate delivery was seen trading at $ 1206.39 an ounce at 12.00 noon Singapore time while U.S. gold futures for August delivery was at $1,207.3 an ounce.

However, analysts said gold prices remained highly volatile Friday as investors were cautious ahead of the release of a U.S. employment report.

The euro held near five-week highs against the U.S. dollar on Friday after rallying three whole cents as speculators were squeezed out of short positions ahead of the job data.

Investors shrugged off a small drop in ETF holdings, turning their attention to the June non-farm payrolls data which will set the tone for currencies and equities.

The world's largest gold-backed exchange-traded fund, SPDR Gold Trust said its holdings dropped to 1,319.219 tones by July 1 from a record of 1,320.436 tones.

On Thursday, the precious yellow metal tumbled nearly 4 percent as funds sold bullion to cover losses in other markets.

Gold futures for delivery in August fell $39.20, or 3.1 percent, to close at $1,206.70 in New York, marking the biggest drop for a most-active contract since Feb. 4. Spot gold also broke below $1,200 in late New York trade to settle at $1198.65.

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