LONDON, Dec 14: Gold steadied in Europe on Wednesday as some tentative buyers crept back in to the market which earlier fell some 1.5 per cent, destabilised by further selling in the Tokyo futures market.

Prices are down five per cent since hitting their highest in just under 25 years at $540.90 an ounce on Monday when waves of buying in Japan added to previous fund-inspired gains.

Investors have poured money into gold for a multitude of reasons, including concerns about rising energy costs, the stability of the dollar and fears of terrorist attacks.

Spot gold fell to as low as $512.50 an ounce before rebounding to $515.00/515.80, still down from $520.60/521.30 late in New York on Tuesday.

—Reuters