SINGAPORE (Commodity Online) : Gold prices recovered in Asian trade Tuesday, after fell to a month-low figure as the euro extended losses versus the dollar.

Gold for immediate delivery was seen trading at $ 1104.02 an ounce at 11.30 a.m Singapore time while US gold futures for April delivery was at 1104.8 an ounce at the same time.

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Analysts said bargain hunting lifted the precious yellow metal while a steadier euro helped ease worries about tighter monetary policy.

Earlier, the market was concerned over India’s surprise rate hike, that may prompt other main users of commodities such as China would follow suit, potentially curbing demand.

On Monday, gold hit a one-week low, breaking through key psychological support at $1,100 an ounce.

Spot gold hit settled at $1097.05 an ounce while US gold futures for April delivery on the COMEX division of the New York Mercantile Exchange closed at $1,097.10 an ounce.

Bullion was 10 percent below a record of above $1,200 an ounce touched in December.

The world's largest gold-backed exchange-traded fund, SPDR Gold Trust, said its holdings stood at 1115.511 tonnes as of March 22, unchanged from the previous business day.

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