LONDON (Commodity Online) : Gold turned more volatile in early European trade Tuesday after border firings in the Korean peninsula boosted its appeal.
The precious yellow metal trimmed early losses as North and South Korea exchanged artillery fire but other commodities declined as the dollar also strengthened.
Gold for immediate delivery edged up briefly after falling as much as 0.6 percent to $1,357.7 earlier in the day. It was trading at $1,364.15 an ounce down 0.1 percent.
U.S. gold futures gained 0.2 percent to $1,361 an ounce. The dollar and U.S. Treasuries rose and U.S. stock futures fell on Tuesday.
North Korea on Tuesday fired dozens of artillery shells at a South Korean island, setting buildings on fire and prompting a return of fire by the South, Seoul's military and media reports said.
The dollar gained against the euro as South Korea said North Korea fired several artillery shells into the South near the two nations’ western border.
Gold, which typically moves inversely to the greenback, reached a record $1,424.60 an ounce on Nov. 9. All six main industrial metals on the London Metal Exchange fell.
Meanwhile, silver for immediate delivery in London lost 0.9 percent to $27.6225 an ounce. It reached a 30-year high of $29.36 on Nov. 9 and is up 64 percent this year.
Palladium fell 1.3 percent to $685.25 an ounce. Platinum was little changed at $1,662.50 an ounce.
With the U.S. Thanksgiving holiday around the corner, investors are watching for a batch of data, as well as minutes from the Federal Reserve's meeting on Nov 2-3, where the Fed decided to launch its $600 billion bond purchase programme.
Spot silver lost nearly one percent to $27.56 an ounce.
Holdings in the iShares Silver Trust, the world's largest physically-backed exchange-traded fund, hit a record high of 10,841.98 tonnes
