SINGAPORE (Commodity Online) : Gold prices edges up in Asian trade Tuesday but remained highly volatile as investors ditched the euro on fears the euro zone debt crisis would spread beyond Greece.

Gold for immediate delivery was seen trading at $1202.01 an ounce at 11.30 a.m Singapore time while U.S. gold futures for June delivery was at $1,201.7 an ounce.

Meanwhile, world's largest gold-backed exchange-traded fund, SPDR Gold Trust, said its holdings stood at a record high of 1,192.150 tons as of May 10, from 1,188.498 tons in the previous business day.

The euro slipped on Tuesday, giving back some gains made the previous day on news of the rescue package to prevent the spread of the European debt crisis, as scepticism remains over Greece's ability to cut its large fiscal deficit smoothly.

On Monday, Gold fell from a five-month high after European policy makers announced a loan package of almost $1 trillion to end a regional-debt crisis, eroding the metal's appeal as an alternative to the euro.

Gold futures for June delivery fell $9.60, or 0.8 per cent, to $1,200.80 an ounce on the Comex in New York, the first decline since May 4. Spot gold ended at $1201.90 an ounce.

Bullion was about 2 percent below a lifetime high of $1,226.10 struck in December last year.