Gold extended a decline from a four-month high as the dollar recovered from a decline against the euro, reducing the metal’s appeal as a currency hedge.
Bullion fell as much as 0.4 per cent to $US1151.90 an ounce after reaching the highest since December 4 yesterday when the euro climbed to an about three-week high against the dollar. The greenback weakened after Greece was offered as much as 45 billion euros ($US61 billion) to ease debt.
''Gold seems to be ready for a pull back,'' said Toby Hassall, a research analyst at CWA Global Markets. ''The dollar looks fairly flat for the day.''
Bullion for immediate delivery traded at $US1153.10 an ounce. Gold futures for June delivery were 0.7 per cent lower at $US1153.80 an ounce in New York. The dollar traded little changed at $US1.3585 against the euro.
Gold may rise to $US1300 later this year or next year, supported by increased investor demand, Philip Klapwijk, the executive chairman of research company GFMS, told a conference in London yesterday.
Platinum for immediate delivery fell 0.6 per cent to $US1,718 an ounce, silver declined 0.8 per cent to $US18.095 and palladium slipped 0.9 per cent to $US513.75.
