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Gold prices edged back above $1,560 an ounce in Europe on Tuesday after a positive reading of German growth lifted the euro versus the dollar, and as physical buyers stepped in to take advantage of the metal's fall to 4-1/2 month lows. Gold remains vulnerable, however, as worries over the euro zone's future simmer in the background, keeping the single currency under pressure. Spot gold was up 0.3 percent at $1,561.16 an ounce at 1150 GMT, while U.S. gold futures for June delivery were up 20 cents an ounce at $1,561.20. Gold earlier hit its lowest since Dec. 30 at $1,547.99 an ounce and is down more than 6 percent in May so far, on track for its worst monthly performance since December, as talk that Greece could exit the euro zone spooked investors. While concerns over euro zone debt prompted investors to buy gold as a haven from risk in 2011, it has moved in line with other commodities this year, wilting under pressure from the stronger dollar. "(Gold's) safe haven status has been tarnished," Richcomm Global Services senior analyst Pradeep Unni said. "It will wobble on the euro's weakness, but in a very short term, bargain hunting and pent-up demand will emerge taking it higher." The euro recovered from four-month lows after German economic growth beat forecasts, though gains could be fleeting as a political stalemate in Greece stoked fears it may renege on bailout pledges and exit the currency bloc. Analysts said any bounce in the euro could run out of steam above $1.2880-$1.2900, with peripheral bond yields still at elevated levels, highlighting the risk of contagion from the Greek deadlock spreading to other euro zone countries. The surprisingly strong German economic data lifted European equities from 2012 lows, though they remained lower. "When German GDP came in at 0.5 percent, a lot higher than expected, the subsequent rally in the euro gave rise to a quick 10-dollar short covering rally in gold," Marex Spectron said in a note. "This may deter the sellers from attempting another push lower for the time being and the fact that $1,550 has basically held will probably spur a little bit of buying interest." "However, if the euro should turn round again then gold will be pushed lower with it," it added. "I think the market has probably done enough on the downside for the time being if the euro can hold."