Gold bounced off a 5-1/2-month low in Europe on Thursday afternoon as weaker-than-expected data on US economic growth hit the dollar, but further volatility was expected as markets digest the previous day's sharp slide.
All metals - industrial and precious - fell on Wednesday as investors bailed out of commodities on fears that moves by China to cool its economy would have serious repercussions for metals demand.
But when US first quarter growth failed to match high expectations, the euro rose to a session high of $1.1968, making dollar-denominated precious metals relatively cheaper for holders of other currencies.
Earlier in the day, silver and palladium were 30 percent and 35 percent off their April peaks, platinum had slid 16 percent and gold was 11 percent down on its 15-year January high.
Traders were expecting further erratic price moves ahead due to dwindling liquidity ahead of the month-end, a long weekend in Europe and holidays in Asia.
Gold was at $385.90/385.70 an ounce by 1439 GMT, up from New York's late quote on Wednesday of $385.75/386.50 and well off an earlier dip down to $377.50 - its lowest since November 7, 2003.
"It held where it needed to, if it had gone through $375, it would have been in real trouble," said Simon Weeks, director precious metals at ScotiaMocatta said.
He thought the worst of the fund liquidation was now out of the way, but expected further volatility ahead due to conflicting signals on the US and Chinese economies.
"If it (gold) gets back over $388, then we could see $392 again - although I think rallies are still there to be sold. Having just liquidated all those positions, I can't see the funds suddenly wanting to come back in again and buy."
Although gold had been dealt a sharp blow over the past couple of weeks, most analysts did not think the precious metal had waved a final goodbye to its bull trend.
Silver, which led the move lower the previous day, had a roller coaster ride on Thursday - sliding another five percent earlier in the day, only to reverse and shoot to the day's high, aided by gold's bounce and a rally in base metals.
Spot was last quoted at $5.87/91 a troy ounce up from $5.85/5.88 in late New York trade on Wednesday and compared with its low of $5.52.
Platinum also steadied, aided by gold's reversal, but it was unable to regain the $800 level. Spot was trading at $794.00/799.00, weaker than New York's $802.00/807.00, but off its lowest since early December 2003 at $771.
Palladium traded at $245.00/250.00 an ounce from $249.00/254.00.
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