Gold price holds gains

BENGALURU, Oct 16 (Reuters): Gold rose on Tuesday as investors unwound some bearish positions after prices jumped to a 2-1/2-month high in the previous session, driven by a global equities sell-off.

Spot gold was up 0.2 per cent at $1,229.34 an ounce by 1109 GMT, having peaked on Monday at $1,233.26, its highest since July 26.

US gold futures were up 0.2 per cent at $1,232.70.

"Gold is still holding the gains, very close to the 100-day moving average. A close above that level could be a positive sign and provoke more short-covering and push prices higher," said Commerzbank analyst Carsten Fritsch.

Speculators who trade on technical signals regard a break above the 100-day moving average as a bullish sign.

Data last week showed that speculators had increased their short positions and traders said the recent rally forced many to abandon those bets on lower prices.