SINGAPORE (Commodity Online) : Gold prices recovered in Asian trade Wednesday after the greenback declined, reviving demand for the precious metal as an alternative investment.

Spot fold was seen trading at $1107.55 an ounce at 11.30 a.m Singapore time while US gold futures for April delivery was at $ 1107 an ounce at the same time.

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The Dollar Index, a six-currency gauge of the dollar’s value, declined 0.2 percent Wednesday.

The greenback traded near a one-week low against the yen on prospects Federal Reserve Chairman Ben S. Bernanke will tell Congress that last week’s increase in the discount rate isn’t a prelude to higher benchmark borrowing costs.

The euro firmed to $1.3542 Wednesday but the currency was still under pressure from an unexpected dip in the the German Ifo index of business sentiment, lower French household spending data as well as weaker Italian consumer confidence.

On Tuesday, Gold fell on weaker than expected US and euro zone economic data and also on fresh concerns about financially strapped Greece weighed, on sentiment for perceived riskier assets like commodities and equities.

April gold fell $9.90, or 0.9 per cent, to settle at $1103.20 an ounce on the Comex division of the New York Mercantile Exchange while spot gold ended at $1102.95 an ounce.

Meanwhile, gold holdings in the SPDR Gold Trust, the biggest exchange- traded fund backed by bullion, decreased 0.91 metric tons to 1,106.99 tons as of Feb. 23.

Silver increased 0.5 percent to $15.9150 an ounce, Platinum added 0.6 percent to $1,520.50 an ounce and Palladium was up 0.1 percent at $433 an ounce.

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