Gold dropped as tensions between North and South Korea eased, curbing demand for a haven, and continued investor concern about financial contagion in Europe hurt the euro, boosting the dollar for a fourth day. Immediate-delivery gold lost as much as 0.4 percent to $1,368.20 an ounce and traded at $1,371.39 at 2:44 p.m. in Tokyo. Bullion climbed to a record $1,424.60 an ounce Nov. 9. Gold for February delivery fell 0.2 percent to $1,372.60 an ounce on the Comex in New York. Most U.S. markets are closed for a holiday. The U.S. sent an aircraft carrier to take part in exercises off the Korean Peninsula after North Korea fired artillery at a South Korean island on Nov. 23. The euro traded near a two-month low against the dollar on concerns over labor strikes and a Portuguese government vote tomorrow on austerity measures. “With the Korean tension easing, investors are watching the debt situation in Europe and this issue may keep depressing the euro,” said Hiroyuki Kikukawa, general manager of research at IDO Securities Co. in Tokyo. Trade in bullion will be limited today because of the U.S. Thanksgiving holiday, he said. The European currency dropped 0.2 percent to $1.3315 versus $1.3335 in New York yesterday, when it fell to $1.3285, the lowest level since Sept. 22. A stronger dollar often curbs the appeal for bullion as an alternative investment. The Dollar Index advanced for a fourth day. The euro has weakened against all 16 of its most-traded counterparts this month as European leaders struggle to contain surging bond yields in countries including Portugal and Spain even after agreeing to rescue Ireland. Irish labor unions are planning a march to protest against spending cuts on Nov. 27. Gold Holdings Gold assets in exchange-traded products rose to 2,085.08 metric tons yesterday from 2,084.47 tons the previous day, according to data compiled by Bloomberg from 10 providers. Holdings reached a record 2,104.65 tons on Oct. 14. Silver holdings were unchanged at 14,930.3 tons, the highest amount since at least February, data from four providers show. The U.S. should cut its government spending and sell some gold reserves to balance its budget and fund its recovery, the People’s Daily newspaper’s overseas edition reported, citing Xia Bin, an adviser to the People’s Bank of China. The U.S. has to resolve its “twin deficits” in the government budget and the current account, Xia was quoted as saying. Three ways that may help the U.S. achieve that include reducing military spending, selling part of its gold reserves and relaxing some export limits on technology, he said. Vietnam Imports Vietnam’s central bank allowed gold imports in an attempt to bring local prices into line with the international market, Nguyen Thanh Truc, vice chairman of the Vietnam Gold Traders Association, said by phone today. About 10 traders are allowed to import the metal from Nov. 24 to Dec. 31, Truc said. Silver for immediate delivery declined 0.6 percent to $27.42 an ounce. The price reached $29.36 an ounce on Nov. 9, the highest level since 1980. Palladium fell 0.5 percent to $693.60 an ounce after gaining 1.2 percent yesterday. Platinum lost 0.5 percent to $1,654.15 an ounce. Both metals are used mostly to make jewelry and pollution-control devices for cars. To contact the reporter on this story: Jae Hur in Tokyo at jhur1@bloomberg.net To contact the editor responsible for this story: James Poole at jpoole4@bloomberg.net

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