India, Feb. 3 -- Gold prices recovered on Tuesday after a steep sell-off triggered by the nomination of Kevin Warsh as chairman of the U.S. Federal Reserve.
Spot gold traded up 5.1 percent at $4,897.40 an ounce in Asian trade but analysts warned the turbulence isn't over. U.S. gold futures were up 5.6 percent at $4,913.81 despite the impact of a stronger dollar.
It seems that the main triggers for bullion remain intact and that the recent crash was largely due to short term drivers rather than any underlying big fundamentals.
Analysts say that further liquidation risks will only re-emerge if prices break last week's lows.
The dollar held on to its gains as the release of upbeat U.S. manufacturing data served to diminish investor expecta...