Gold prices very seen on a recovery note on technical strength and bargain hunting when the double-dip recession fears triggered the biggest losses in six weeks in the previous session. Gold was supported by a stronger euro against the dollar ahead of the US Independence Day long weekend.
Michael Daly, gold specialist at Chicago-based futures broker PFGBest said: "gold was under pressure as deflation talk was back in focus and as the metal had failed on several occasions to break above the $1,260 to $1,270 levels. The worst maybe over at this point. The market takes a beating, and, if we close higher than the $1,210 support area, it may be a sign that gold has withstood the break and a signal to reenter the market."
The August contract for gold settled $1 higher at $1,207.70.