Gold jumped more than 1 percent on Friday after Germany's approval for expanding the euro zone bailout fund offered temporary relief to investors, but the precious metal was heading for its worst monthly decline in three years.
With the euro debt crisis unlikely to be resolved any time soon, investors have shifted their attention to Greece, which demands more far-reaching measures to prevent the crisis that started in Athens from spreading far beyond Europe.
Spot gold added $12.34 an ounce to $1,626.39 an ounce by 0328 GMT. Despite the gain, prices were headed for a monthly fall of 11 percent, their worst since October 2008 when they tumbled 17 percent after the collapse of Lehman Brothers.
"It seems that there are still hurdles ahead before the European debt crisis is resolved," said Ong Yi Ling, an analyst at Phillip Futures in Singapore.
http://in.reuters.com/article/2011/09/30/us-markets-precious-idINTRE78M11C20110930
