Gold prices eased further in Asian trade Tuesday as the dollar strengthened against the euro amid weak equity markets.

Gold for immediate delivery was seen trading at $ 1205.89 an ounce at 12.00 noon Singapore time while U S gold futures for August delivery was at 1206.02 an ounce.

Meanwhile, holdings in the world's largest gold-backed exchange-traded fund, SPDR Gold Trust were unchanged at 1,318.915 tons.

The greenback strengthened 0.3 per cent against a basket of six major currencies Tuesday, rising for a second day.

However, the dollar and the euro eased against the yen in thin trade, while the Australian dollar edged lower ahead of a central bank decision where it is widely expected to be keep interest rates steady.

Equity markets remained weak Tuesday on growing concerns of slowdowns in the US and China. Data last week showing the U.S. labour market shrank in June for the first time this year, slower Chinese manufacturing activity and euro zone austerity measures fed concern over prospects for the global economy.

Silver for immediate delivery dropped 0.5 per cent to $17.725 an ounce, while platinum lost 0.9 per cent to $1490.75 an ounce. Palladium gained 0.5 per cent at $431 an ounce.

U.S. financial markets reopen on Tuesday after a holiday for the country's independence day.

China Gold