Gold prices ease from two-week high as dollar edges higher

Gold slipped on Thursday after hitting a nearly two-week high earlier in the session, hurt by an uptick in the dollar, although worries over the US government's increasing debt burden and fiscal outlook kept prices above $3,300 level, reports Reuters.

Spot gold was down 0.3 per cent at $3,303.82 an ounce, as of 1020 GMT, after hitting its highest level since May 9 earlier in the session.

US gold futures fell 0.3 per cent to $3,304.10.

"Selling coming in especially from those looking to book profits and a degree of recovery in the dollar seems to have taken some of the shine off gold," Ross Norman, an independent analyst said.

The dollar index edged up 0.2 per cent against its rivals, making greenback-priced bullion more expensive for other currency holders.

"There are concerns about the way the US is managing its debt issue and one would expect gold to remain relatively firm if the markets take these tax cuts in a negative way," Norman said.

Moody's cut the United States' top sovereign credit rating by one notch last week, citing concerns about its growing $36 trillion debt pile.

Elsewhere, spot silver fell 0.7 per cent to $33.14 an ounce, platinum dropped 0.7 per cent to $1,068.97 and palladium lost 2 per cent to $1,015.97.