Gold prices recover after Monday's record decline

Gold prices rebounded on Tuesday, rising 3% a day after the record fall of nearly 9%, but the overall sentiment remained edgy after Monday's rout as crude oil dipped below $100 for the first time since the middle of last year and most commodities could recover only a small part of the heavy decline they suffered.

Market analysts said commodities could fall further on continuing concerns about weak demand from China and the US, which have propelled demand for years, but both the engines of growth released disappointing economic data, which rattled markets.

Gold, which is normally the safe haven for investors in troubled times, has fallen sharply after an amazing 12-year bull run. Investors were alarmed by the prospects of a proposed sale of Cypriot gold holdings.

"We still believe that the price has further to fall - the fundamental (non-speculative) value of gold is still a fraction of the current price," Alan Miller, CIO of SCM Private, an investment management firm, said in a note cited by Reuters.