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Gold shines amid lacklustre Europe

INVESTORS are relying on gold values in the volatile market where rumours of a eurozone bailout abound.

The world largest gold exchange-traded fund, SPDR Gold Trust, reported a fifth straight day of gains in its holdings -- standing at 1,268.666 tonnes. This figure is the highest since late August.

"Given the ongoing high uncertainties and the current risk aversion, gold should remain well supported despite the latest price slump," Commerzbank said in a research note.

However, there are fears that the disastrous eurozone news could cause a freefall of the price of gold as investors are forced to liquidate their positions to cover losses elsewhere.