Gold ticked higher on short covering on Wednesday after the euro steadied against the US dollar, but the metal remains vulnerable to selling pressure after previous failed attempts to test new highs. While heading for its sixth consecutive quarter of gains, gold was still about 10 percent below a record high around $1,226 struck in December and hovered below the 100-day moving average.
Spot gold was at $1,105.90 an ounce by 0516 GMT, up $3.40 from New York's notional close on Tuesday, when it slipped to track a falling euro. Gold has been in a $60 trading range in the past six weeks, indicating indecision among investors. Immediate resistance was seen at recent highs above $1,110.
US gold futures for June delivery added $1.20 to $1,106.90 ounce after falling on Tuesday due to month-end position squaring and contract rollover. Trading was slow ahead of the release of China's purchasing managers' index for March on Thursday due to persistent worries about monetary tightening that could cut the country's demand for industrial metals and affect sentiment in commodities.
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