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Gold rebounded more than 1 percent on Wednesday after posting its worst daily drop in 18 months, as risk appetite retreated after Moody's downgraded Japan's debt rating and strong buying interest in Asia's physical market lent support. The sharp drop in prices in the previous session triggered strong buying interest as Asia opened business, sending spot gold up as much as 1.3 percent to $1,853.19 an ounce, and traded up 0.6 percent to $1,840.90 by 0655 GMT.
US gold trimmed early losses to $1,844.00. Other precious metals also bounced back from Tuesday's fall. Spot silver gained more than 1 percent to an intra-day high of $42.4, after sliding more than 4 percent in the previous session - its worst in nearly three weeks. It was last quoted at $41.78. Spot platinum traded up 0.3 percent to $1,861.74, after dropping more than 2 percent in the previous session.

Copyright Reuters, 2011

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