Gold declined, snapping a two day advance, as the strengthening US dollar sapped demand for the precious metal as an alternative asset.
Gold for immediate delivery weakened 0.4 per cent to $US1155.05 an ounce in Singapore. The dollar rose for a second day, adding 0.2 per cent against six major global currencies as prospects Greece will struggle to rein in the euro region’s widest budget deficit spurred haven demand.
"Gold is down because of the dollar’s strength and white metals are also weaker,'' said Wallace Ng, head of precious metals with Fortis Nederland in Hong Kong. "That doesn’t mean the trend has changed. The retreat in metals is viewed as a temporary correction.''
Bullion has fallen 0.6 per cent this week after rising for a fourth consecutive week to April 9. The metal touched $US1170 an ounce on April 12, the highest price since December 4.
Eleven of 20 traders, analysts and brokers surveyed by Bloomberg, or 55 per cent, said gold may rise next week as signs of rising producer prices spur demand for the precious metal as a hedge. Four people expect a decline and five were neutral.
"It’s still unclear so you can’t be positive or negative,'' said Ghee Peh, head of Asian mining research with UBS Securities Asia. "At the moment, gold is definitely not a safe haven because things are not that bad and there’s no inflation so it has to be neutral.''
Silver lost 0.6 per cent to $US18.3075 an ounce, platinum fell 0.1 per cent to $US1718 an ounce and palladium was off 0.8 per cent at $US540.50 an ounce.
