Gold rebounds after failure to test record

Gold bounced on Tuesday after a volatile session the previous day, when it nearly touched last week's all-time high before a firmer U.S. dollar triggered heavy selling from speculators.

FUNDAMENTALS

* Spot gold rose $3.60 to $1,239.65 an ounce, having

risen as high as $1,262.45 an ounce on Monday, just below a record around $1,264, before losing much of the gain to a bout of profit taking.

* U.S. gold futures for August delivery added $3.1 an ounce to $1,241.7 an ounce, having hit a high around $1,263 on Monday.

* The world's largest gold-backed exchange-traded fund, SPDR Gold Trust (GLD.P) said its holdings were unchanged at a record high at 1,316.177 metric tones.

MARKET NEWS

* The euro was under pressure on Tuesday and dangerously close to a key support level, as funding concerns about the euro zone drove investors to the safe-haven Swiss franc.

* The Nikkei rose 0.3 percent on Tuesday after posting a two-week closing low the previous day, shrugging off declines in U.S. stocks.

* Commodities fell broadly on Monday, with oil down as the market grew less worried that a storm in the U.S. Gulf would threaten oil and gas installations while metals slid on caution about an impending U.S. jobs report.

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Precious metals prices at 0031 GMT

Metal Last Change Pct chg YTD pct chg Turnover

Spot Gold 1239.65 3.60 +0.29 13.14

Spot Silver 18.70 0.02 +0.11 11.11