Gold firmed in Europe on Thursday as a strong recovery in equity markets cut selling of the precious metal to cover losses elsewhere, and as physical buyers took advantage of lower prices to stock up.
World shares rose half a percent to one-week highs on Friday while the euro clung to gains from the previous session on hopes that European policymakers would finally come up with a bold plan to combat a deepening debt crisis.
Investors tucked into beaten down oil stocks, helping lift Europe's leading shares on Monday after a sharp retreat the previous week, while gold issues drew interest amid lingering worries about global growth.
Brent crude for September fell 26 cents to $109.65 by 3:57 a.m. GMT, after falling to as low as $109.23 earlier. U.S. crude was down 34 cents at $87.54 a barrel.
The world's economy moved closer to stagnation last month as firms in Asia and Europe reined back in the face of an ongoing debt crisis and signs of a new U.S. slowdown, business surveys showed on Wednesday.
Gold steadied on Wednesday ahead of a raft of U.S. data due later, having earlier risen to four-week highs as a retreat in the dollar and concerns over the medium-term inflation outlook helped support the precious metal.