Gold regained some footing on Wednesday, after dropping more than 1 percent in New York, as the euro inched up against the US dollar and bargain hunting resurfaced. China's demand for gold as an investment hit 38.4 tonnes in the first nine months of in 2008, already exceeding total retail investment demand of 24 tonnes in 2007, a senior industry official said.
Gold was trading at $736.50 an ounce, up $5.75 an ounce from New York's notional close on Tuesday, when a firmer dollar, worries about a global recession and weakness in other commodities sparked selling from speculators. Investors in Japan have been active buyers this week, partly due to a stronger yen against the US currency, which makes dollar-priced gold bars cheaper to buy. Dealers also noted buying from jewellers in India, the world's largest consumer. Platinum was trading at $833.00 ounce, up $20.50 from New York's notional close on Tuesday.