(Reuters) - Gold strengthened Monday in line with gains in shares and the euro after Greece's parliament finally approved a deeply unpopular austerity bill to secure a second bailout from the European Union and the IMF to avoid bankruptcy.

Physical buying from China also helped lift gold up $6.10 an ounce to $1,725.49 by 0236 GMT. Bullion fell to $1,703.69 on Friday, its lowest since late January, as uncertainty over negotiations for Greece's bailout package prompted investors to cash in.

The Greek parliament approved on Monday the deeply unpopular austerity bill, while serious violence broke out on the streets of Athens and spread across the country.

The European Union meets on Wednesday to discuss giving a seal of approval for the new 130 billion-euro bailout.

We are still looking for more measures out of Europe before we see a sustainable risk rally. Yes, perhaps it's good that we have a second bailout package and we are sure that at least we are not going to see Greece defaulting, said Ong Yi Ling, an analyst at Phillip Futures.

I am looking for the resistance for gold at about $1,760. That will be the first resistance and the second one is at about the $1,800 level. For gold to break the $1,800 level, we need more measures, I would say.

U.S. gold for April delivery rose $3.20 to $1,728.50 an ounce.

Gold, typically a safe-haven asset, has been tracking the fortunes of the euro and stocks, with speculators selling the metal for cash to cover losses in other markets, especially during this period of uncertainty in Europe.

Asian shares and the euro gained modestly on Monday, relieved by the Greek parliament's passage of austerity measures which put the country a step closer to securing a much-needed bailout fund and avoiding a messy default.

The Chinese guys are still buying. Whenever there is a dip in prices, they will buy. There's no change in their attitude, said a physical dealer in Hong Kong, who trades gold bars.

They are still buying today, because I think the downside is limited for the time being. Sentiment has improved a little bit.

China has instructed its banks to embark on a huge roll-over of loans to local governments, the Financial Times reported, aiming to give itself more time to deal with a debt hangover from the global financial crisis.

In the energy market, Brent crude futures rose more than a dollar on Monday, supported by a weaker dollar after Greek lawmakers passed the austerity bill.

(Editing by Sugita Katyal)