SINGAPORE (Commodity Online) : Gold prices eased in Asian trade Friday despite a recovery by the euro after China assured investors it was not losing confidence in euro zone assets.
Gold for immediate delivery was seen trading at $1208.95 an ounce at 11.30 a.m Singapore time while U.S. gold futures for June delivery was at $1208.01 an ounce at the Comex division of the New York Mercantile Exchange.
Analysts said the precious yellow metal failed to build on modest gains in the previous session after competing with rallying stock markets for fresh investment.
Gold has rallied 11 per cent this year, reaching a record $1249.70 an ounce on May 14, amid Europe's sovereign-debt crisis.
Meanwhile, SPDR Gold Trust rose to yet another record, showing a global appetite for less risky investments continues to grow amid lingering euro zone debt fears and tensions between South and North Korea.
The world's largest gold-backed exchange-traded fund said its holdings totaled 1,267.930 tones as of May 27 versus 1,267.626 tones a day earlier, setting a fresh record high.
The euro steadied at a higher level on Friday, benefiting from a short-covering bounce after China assured investors it was not losing confidence in euro zone assets.
The euro climbed as much as 1.8 per cent against the dollar and European equities gained.
On Thursday, gold for June delivery on the Comex division of the New York Mercantile Exchange fell $1.50, or 0.1 per cent, to $1211.90 an ounce.
The August contract, which now has the most open positions, slipped 90 cents, or 0.1 per cent, to $1214.40.