Gold eased in Europe on Friday as the U.S. dollar surged to nine-month highs versus the euro, but erased much of its earlier decline as investors bought the precious metal to hedge against financial market risk.
Spot gold was bid at $1,107.45 (U.S.) an ounce at 1032 GMT, down from $1,111.40 late in New York on Thursday but well off an earlier low of $1,098.55.
The metal was sharply lower in Asia but met buying interest in early European trade amid fears over instability in the currency markets. The euro is suffering from dollar strength and concern over the fiscal health of smaller euro zone economies.
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