Gold was steady on Thursday, after falling more than 1 per cent to a two-month low near $US900 an ounce the previous day as investor risk aversion pushed up the US dollar versus the euro, dulling gold's allure as an alternative asset.
Spot gold traded at $US909.00 an ounce in Asian trade, up slightly from New York's notional close of $US908.45.
On Wednesday, gold fell as low as $US904.70, its lowest since May 8.
Bullion has lost its allure recently due to lessened inflation concerns after a fall in oil prices and as flight-to-quality buying in the face of economic uncertainty was directed into US Treasury bonds and the dollar.
US gold futures for August delivery fell 0.1 per cent to $US908.10 an ounce after falling $US19.80, or 2.1 per cent, to $US909.30 on the COMEX division of the New York Mercantile Exchange on Wednesday.
The world's largest gold-backed exchange-traded fund, the SPDR Gold Trust, said holdings stood at 1109.81 tonnes as of July 8, down 10.38 tonnes or 0.9 percent from the previous business day.
Reuters
