Gold edged up on Tuesday but held around $20 below a lifetime high struck last week, while another increase in holdings in the world's largest gold-backed ETF showed investors were keeping faith with the metal.
Bullion, which has gained around 11 percent this year, was consolidating at current levels before charging higher again, with dealers expecting the euro to resume its downtrend, weighed down by the fiscal woes of the eurozone. Spot gold was at $1,225.80 an ounce by 0555 GMT, up $2.80 from New York's notional close on Monday. Bullion hit a record of $1,248.95 on Friday on fears that eurozone austerity measures could trigger a downturn in the region.