Gold Recovers a Little After a Couple of Torrid Days

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"I think the market is a bit panicky at the moment because it has broken all the major supports. People are very cautious about oil prices, the U.S. dollar and everything," said Ellison Chu, manager of precious metals at Standard Bank Asia in Hong Kong. "I can't say whether it is supportive, but we see a lot physical-related buying," he said.

Gold regained strength on Thursday as more physical buyers resurfaced after prices struck another 11-month low, but the U.S. dollar's strength against the euro threatened to cap gains.

Investors who propelled gold to a lifetime high of $1,030.80 in March on inflation fears and a struggling dollar are ditching their bullion holdings as the U.S. currency stages a dramatic rebound. Other precious metals have slumped to multi-month lows. Gold rose about half a percent to $755.70/756.70 an ounce by 0225 GMT, rebounding from an intraday low of $748.60 an ounce. It fell to $752.55/754.15 in New York on Wednesday, down 6 percent in two days, the sharpest two-day loss since March.

"Investor interest has diminished because of the movement of the U.S. dollar and the oil price," said David Moore, analyst at Commonwealth Bank of Australia in Sydney...

"I think the market is a bit panicky at the moment because it has broken all the major supports. People are very cautious about oil prices, the U.S. dollar and everything," said Ellison Chu, manager of precious metals at Standard Bank Asia in Hong Kong. "I can't say whether it is supportive, but we see a lot physical-related buying," he said.

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