Gold prices remained vulnerable in Asian trade Thursday despite advanced marginally in early trade.
Gold for immediate delivery was seen trading at $1229.02 an ounce at 12.00 noon Singapore time while US gold futures for December delivery was at $ 1231.45 an ounce on the comex division of Nymex.
Analysts said the precious yellow metal still cashing in on global economic concerns amid volatile equities, though bargain hunting likely to trim some gains later in the day.
They said the bullion remains vulnerable if investors have to sell positions to cover any sharp fall in equity markets caused by continued skepticism about the global economic recovery.
Fears about a double-dip recession after a flurry of weak economic data and the Fed's downward reassessment of its US outlook lifted gold's appeal as an alternative investment.
Meanwhile, prices remain supported by increased interest in the world's largest gold-backed exchange-traded fund, SPDR Gold Trust, which said its holdings rose to 1,295.516 tones by August 18 from to 1,294.604 tones on August 17.
Silver for immediate delivery rose 0.6 per cent to $18.48 an ounce, platinum gained 0.3 per cent to $1538.25 an ounce and palladium climbed 0.2 per cent at $491.13 an ounce
On Wednesday, a brisk move up in gold prices put the yellow metal at a six-week high amid continued uncertainty about the global economic outlook.
Spot gold stood at $1,222.65 per ounce by , compared with $1,222.90 late in New York on Tuesday.
The most actively traded gold contract, for December delivery, rose $3.10 to settle at $1231.40 an ounce on the Comex division of the New York Mercantile Exchange.