Gold prices rose yesterday and were on track for their biggest quarterly gain this year as concerns that the Eurozone debt crisis was far from resolved weighed on stock markets and the euro, lifting interest in bullion as an alternative.
However, the metal is set to end September with a loss of more than 10 per cent, its worst monthly performance since October 2008, after extreme volatility which took it to a record $1,920.30 (Dh7,052.28) last month and saw it trade in a near $400 range.
Spot gold was up 0.3 per cent at $1,619.19 an ounce at 1207 GMT.
The risk aversion that drove prices higher earlier in the quarter turned negative for gold as a slide in other assets prompted selling of the metal to cover losses elsewhere. A rise in margin requirements for US gold futures also weighed.