(Reuters) - Gold prices rebounded on Tuesday from a sell-off in the previous session, as the sovereign debt crisis in Europe remains supportive of safe-haven demand in bullion.
FUNDAMENTALS
* Spot gold gained 0.6 percent to $1,824.09 an ounce by 0025 GMT, after shedding more than 2 percent in the previous session.* U.S. gold rose 0.8 percent to $1,827.60.
* Heightening fears of a potential Greek debt default hammered the euro and equities on Monday, and sparked a sell-off in gold as investors took profit off their gold bets to cover losses in other markets.
* But bullion remains supported by demand from investors fleeing riskier assets during economic turmoil.
* U.S. Treasury Secretary Timothy Geithner makes a one-day trip to Poland this week for an unprecedented meeting with euro zone finance ministers.
* China's central bank said the country's inflation, though easing in August, was still too high and it would maintain its monetary policy settings. High inflation is likely to benefit the country's demand for gold, seen as a good inflation hedge.
MARKET NEWS
*
The euro held above a seven-month low against the greenback in Asia on
Tuesday after a whippy session overnight saw a wave of short-covering
lift it more than two cents on hopes that China would bolster Italy by buying its bonds.* U.S. stocks rose on Monday, bouncing back in late trading, as hopes for Italy to get financial support from China tempered investors' worst fears over the euro zone's sovereign debt crisis. .N
(Reporting by Rujun Shen; Editing by Clarence Fernandez)
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