Gold rose 1 percent in Europe on Wednesday, recovering from the three-week lows it hit in the previous session, as the dollar weakened against the euro on concern selling of the single currency had been overdone. Spot gold was bid at $1,142.60 an ounce at 1:35 p.m., against $1,129.30 late on Tuesday. The metal hit a low of $1,125.15 an ounce late in that session as the dollar rose, some 8 percent below the record $1,226.10 it hit on December 3. The world's largest gold-backed exchange-traded fund, the SPDR Gold Trust, said its holdings fell 13.719 tonnes to 1,116.247 tonnes on Tuesday, their biggest one-day drop since mid-July. Simon Weeks, head of precious metals at the Bank of Nova Scotia, said while gold had found support, its correction may have further to run. "$1,125 is the 50 percent retracement of the overall move from $1,025 to... the high," he said. "We have held there twice, and with the forex market move, we have had a bounce since, but with the ETFs losing 15 tonnes yesterday, there is definitely some liquidation around at the moment." "For the time being, we definitely need to have this correction, and we'll probably extend down to $1,068-1,070 before it is complete," he added. The SPDR gold ETF is the world's sixth largest bullion holder, according to World Gold Council data dated September, ahead of China, Japan and Switzerland.