Singapore - Gold ticked up on Thursday while holdings on the world's biggest bullion-backed ETF hit another record on euro-zone debt crisis fears, which sent the euro to a one-year low and sparked a sell-off in stocks.
Gold priced in euro struck a record as investors lost faith in the single currency and rushed to buy bullion, while silver, platinum and palladium bounced higher from Wednesday's lows.
Spot gold was at $1175.30 an ounce, up $1.10 from New York's notional close on Wednesday, when it dropped to a one-week low before regaining some strength. Gold rallied to this year's peak around $1191 an ounce on Tuesday.
"Gold is behaving more like a flight-to-safety product. There's a potential for gold to go up together with the U.S. dollar in this time of uncertainty," said Wong Eng Soon, an investment analyst at Phillip Futures in Singapore.
"The number one uncertainty is of course the contagious effect of the euro-zone fiscal deficit. The immediate target will be $1200," said Wong, referring to a level last seen in December, when bullion struck record at $1226.10 an ounce.
The world's largest gold-backed exchange-traded fund, SPDR Gold Trust, said its holdings stood at a record of 1166.002 tonnes as of May 5, up from 1159.002 tonnes in the previous business day.
US gold futures for June delivery added $1.2 to $1176.2 an ounce.
The euro hit another 14-month low on Thursday before rebounding as investors shifted focus to a European Central Bank meeting later in the day. The euro has broken key support levels and the next level is seen around $1.2550 with many in the market already eyeing its 2008 low around $1.2330.
European leaders warned on Wednesday the debt crisis could spread like a bush fire beyond Greece where anti-austerity unrest claimed its first lives.
Japan's Nikkei average slid 3% to a two-month low on Thursday, catching up with falls in other markets after a string of holidays, as more signs emerged that the fallout from the Greek debt crisis may spread to bigger European economies.
Bullion dealers noted early selling from investors which sent prices to an intraday low around $1173 an ounce but overall sentiment remained bullish. Jewellers were on the sidelines.
"We've some selling earlier but there are some buybacks when the Japanese markets opened. We are still bullish on gold because there's so much uncertainty in the euro zone," said a dealer in Hong Kong.
"We are also watching the developments in the UK. Who is going to win the elections. It's very important," he added.
Gold priced in sterling hit a record high this week, partly driven by political uncertain in Britain.
Britons vote on Thursday in what is forecast to be the closest election since 1992, with the opposition Conservatives struggling to convert their opinion poll advantage into an outright majority.