Gold Hovers Around $1,900 on Euro Zone Woes

Spot gold hovered around $1,900 an ounce on Tuesday, as renewed fears over the euro zone's debt crisis drove investors to safe-haven assets such as bullion.

Worries about the resurfacing euro zone debt crisis helped push gold above $1,900 in the previous session, while Europe faces a string of political and legal tests this week that could hurt efforts to resolve its sovereign debt crisis and step up pressure for governments to try more radical solutions.

Greece expects to receive another tranche of aid on schedule in September despite a dispute with international lenders Athens had fallen behind schedule in cutting its deficit.

Global growth in services came to a virtual standstill last month as new business all but dried up, adding to fears the world economy is facing another recession.

nvestors are closely watching the data out of Europe, including revised Gross Domestic Product (GDP) for the second quarter and Germany's industrial orders in July.

European stocks tumbled 4 percent on Monday, as fears for the future of the euro zone bubbled up against a background of weak economic growth and threats to the banking sector. Wall Street was closed for a public holiday.

The euro wallowed at one-month lows against the greenback in Asia on Tuesday, while commodity currencies nursed heavy losses as concerns about the health of the global economy prompted investors to dump riskier assets.