SINGAPORE (Commodity Online) : Gold prices advanced in Asian trade Tuesday but remained volatile as investors began profit taking on recent highs of the precious metal.
The yellow metal however remained $20 below a lifetime high struck last week, while another increase in holdings in the world's largest gold-backed ETF showed investors were keeping faith with the metal.
Gold for immediate delivery was seen trading at $1224.45 an ounce at 12.00 noon Singapore time, up $1.40 from New York's notional close on Monday.
However, U.S. gold futures for June delivery fell $2.1 an ounce to $1,226 an ounce at the same time, pausing for breath after recent highs.
Bullion, which has gained around 11 percent this year, was consolidating at current levels before charging higher again, with dealers expecting the euro to resume its downtrend because of the euro zone's fiscal woes.
Bullion hit a record of $1,248.95 on Friday on fears that euro zone austerity measures could trigger a downturn in the region.
The euro slipped to $1.2376 on Tuesday, having pulled up from a four-year trough of $1.2234 hit on trading platform EBS on Monday.
On Monday, June delivery rose 30 cents to $1228.10 an ounce on the Comex in New York, after fluctuating most of the day.