London: Gold rose back above $1,140 (Dh4,192.92) an ounce in Europe yesterday as a recovery in risk appetite lifted both the euro and commodity prices, helping the metal regain some upward momentum after a slide to two-week lows.
Prices came under pressure along with those of other commodities after US regulators charged Goldman Sachs with fraud on Friday, prompting selling of assets seen as higher risk, including commodities and currencies like the euro.
Spot gold was bid at $1,140.95 an ounce at 1145GMT, against $1,134.60 late in New York on Monday. US gold futures for June delivery on the Comex division of the New York Mercantile Exchange rose $5.90 to $1,141.70 an ounce.
"Technical signals are still fairly supportive for all precious metals. Momentum and trend ratings are still positive," said Tobias Merath, head of research at Credit Suisse. "And we have seen the euro-dollar creeping higher.
"Since the beginning of April yields have been coming off, and that is supportive for gold," he added. "You don't get any yield from your investment in gold, so when yields drop, then other investments become less attractive."
The euro rose 0.1 per cent versus the dollar yesterday, rebounding after hefty losses made after the fraud charges against Goldman Sachs over its marketing of a subprime mortgage product.
Goldman said yesterday it nearly doubled its first-quarter earnings, beating expectations. US stock futures extended gains on the news.
Other commodities also recovered, with oil prices rising $1 a barrel as equity markets climbed.
