"I think we're seeing a technical rally here more than anything else," said a Canadian-based analyst. "It looks as though there has been a bit of physical buying attracted by these prices." Comex June gold settled at $274.70 per ounce, up $1.20 from last Wednesday's $273.50 contract low close. Trading was confined between $273.50 and $275.50. Spot bullion was quoted at $274.10/60 per ounce, versus Wednesday's close of $272.90/3.40.

In London, gold was fixed at $274.00 per ounce, up from the 20-year low set on last Wednesday at $272.50 amid the aftershocks of Britain's May 7 announcement that it will sell more than half of its gold reserves.

Seasonal buying related to India's wedding season, tourism in Turkey and other factors, is expected to dry up in coming weeks.