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LONDON: Gold fell on Tuesday as the dollar climbed versus the euro on rising risk aversion, denting interest in the metal as an alternative asset and making it more expensive for non-US buyers.
The metal recovered from session lows of $1,108.55 an ounce, however, as the US currency pared gains, oil prices recovered some of their earlier losses and metal found strong buying interest at lower levels, dealers said.
Spot gold was bid at $1,115.75 an ounce at 1539 GMT, against $1,122.85 late in New York on Monday. US gold futures for April delivery on the COMEX division of the New York Mercantile Exchange slipped $7.50 to $1,116.50 an ounce.
China's top foreign exchange manager, head of the State Administration of Foreign Exchange Yi Gang, said on Tuesday Beijing will be prudent in adding gold to its official reserves, wary that such a move would drive prices higher.
Speculation has been rife in the last year that China would add to its gold reserves, given that its current holdings make up only a small proportion of its foreign exchange reserves.
Palladium was at $463 against $470, while platinum was at $1,588.50 an ounce versus $1,595.50. Among other precious metals, silver was at $17.09 an ounce against $17.21. -Reuters
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