The price of gold is steady following a rally from a three-month low late last week.

Bargain hunters helped to bolster the price in New York and Tokyo futures picked up, Reuters reports.

"We are seeing bargain-hunting and short-covering, though it's not clear yet if this will continue or not," said an analyst in the Japanese capital. "I expect bullion to trade between $645 and $655."

Following a fall to $644.40 on Friday, some commentators believe that failure to hold above the $650 level will leave gold in danger of falling more rapidly.

Bloomberg reports that gold did not change much in Asia, as speculation that demand for the yellow metal from jewelry makers may rise.

"Physical buying may provide some underpinning of the price," said Investec Bank (Australia)'s Darren Heathcote.

In the longer term, Mineweb analyst Lawrence Williams believes that the price of gold will recover and move towards recent highs - and possibly "move into the stratosphere".