Gold falls in Asia as euro declines versus dollar, oil drops
Tuesday, 13 November 2007
Gold declined in Asia after the euro weakened against the US dollar for the first time in five days and crude oil prices fell. Silver also dropped, reports Bloomberg.
The euro declined, after rallying against the dollar to a record last week, reducing the precious metal's appeal as an alternative investment. Investors also sold gold, which last week reached the highest price since 1980, as a drop in crude oil prices reduced demand for bullion as an inflation hedge.
``Investors may have been left a little more cautious given the recent large increase in the gold prices,'' David Moore, commodity strategist at Commonwealth Bank of Australia, said in a note to clients today.
Bullion for immediate delivery fell as much as $9.58, or 1.2 per cent, to $822.42 an ounce before trading at $823.58 an ounce at 9:50 a.m. Singapore time. Gold rose to $845.84 an ounce on Nov. 7, the highest in more than 27 years. Silver declined 25 cents, or 1.6 per cent, to $15.21 an ounce.
The euro was down 0.3 per cent at $1.4645, compared with the record high $1.4752 on Nov. 9 in New York. Gold gained 23 per cent last year as the euro climbed 11 per cent against the dollar.
Crude oil in New York traded as low as $95.04 a barrel today after reaching a record $98.62 a barrel on Nov. 7.
December-delivery gold on the Comex division of the New York Mercantile Exchange fell $11.50, or 1.4 per cent, to $823.20 an ounce. The contract reached $848 on Nov. 7, the highest for a most-active contract since Jan. 21, 1980.
In Japan, gold for delivery in October fell 91 yen, or 3 per cent, to 2,952 yen a gram ($830 an ounce) on the Tokyo Commodity Exchange at the 10:46 a.m. local time.
The euro declined, after rallying against the dollar to a record last week, reducing the precious metal's appeal as an alternative investment. Investors also sold gold, which last week reached the highest price since 1980, as a drop in crude oil prices reduced demand for bullion as an inflation hedge.
``Investors may have been left a little more cautious given the recent large increase in the gold prices,'' David Moore, commodity strategist at Commonwealth Bank of Australia, said in a note to clients today.
Bullion for immediate delivery fell as much as $9.58, or 1.2 per cent, to $822.42 an ounce before trading at $823.58 an ounce at 9:50 a.m. Singapore time. Gold rose to $845.84 an ounce on Nov. 7, the highest in more than 27 years. Silver declined 25 cents, or 1.6 per cent, to $15.21 an ounce.
The euro was down 0.3 per cent at $1.4645, compared with the record high $1.4752 on Nov. 9 in New York. Gold gained 23 per cent last year as the euro climbed 11 per cent against the dollar.
Crude oil in New York traded as low as $95.04 a barrel today after reaching a record $98.62 a barrel on Nov. 7.
December-delivery gold on the Comex division of the New York Mercantile Exchange fell $11.50, or 1.4 per cent, to $823.20 an ounce. The contract reached $848 on Nov. 7, the highest for a most-active contract since Jan. 21, 1980.
In Japan, gold for delivery in October fell 91 yen, or 3 per cent, to 2,952 yen a gram ($830 an ounce) on the Tokyo Commodity Exchange at the 10:46 a.m. local time.