Gold bounces back from 3-month low

TOKYO: Gold prices firmed yesterday in a technical bounce after falling to a three-month low late last week, when investors sold commodities on worries about fiscal stability in Greece and the broader eurozone.

Given the euro's bearish outlook despite the Group of Seven's reassurance on Greece at a weekend meeting in Canada, lower risk tolerance by investors is expected to support the dollar and weigh on gains for the precious metal, traders said.

Dollar strength often reflects risk aversion by investors and also makes dollar-priced commodities more expensive for holders of other currencies.