Gold prices gained momentum on bargain hunting in Asian trade Tuesday despite broad drops by all major commodities.

Gold for immediate delivery was seen trading at $1239.69 an ounce at 12.00 noon Singapore time while U.S. gold futures for August delivery was at $1,241.7 an ounce.

Analysts however said the bullion market sentiment still underpinned by Europe's debt crisis and record high ETF holdings although it struggled to revisit last week's all-time high.

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

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.

On Monday, commodities fell broadly, 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.

Gold for August delivery dropped $17.60, or 1.4 per cent, to $1238.60 an ounce on the Comex in New York, the biggest loss for a most-active contract since June 21.