Gold steady as bargain hunting subsides

SINGAPORE - Gold hardly moved on Tuesday as early bargain hunting subsided, and dealers said a weaker US dollar was probably needed to help the metal break free from its current range.

Speculators, who have built up positions in New York on worries about Greece's ability to repay its debt, may unwind holdings further but gold could find support at the current levels.

Dealers shrugged off news that China would be prudent in buying gold as a component of official reserves, which was in line with market thinking the country would not buy bullion in the open market, as it costs less to buy from domestic mines.