SINGAPORE (Commodity Online) : Gold lost much of its steam in Asian trade Wednesday on dollar recovery and also on speculation of profit selling.
Gold for immediate delivery was seen trading at $1427 an ounce at Gold prices steadied on p.m Singapore time while US gold futures was at $1,428. 02 an ounce.
Analysts said the precious yellow metal is likely to remain highly volatile and may weakened towards weekend on speculation that recent gains may prompt some investors to offload holdings.
However, continued Middle East and Northe Africa unrest and Japan crisis could boost the yellow metal anytime, they added.
The Dollar Index, a six-currency gauge of the greenback’s value, advanced 0.2 percent, extending yesterday’s gain from near the lowest level since December 2009.
Stronger Dollar Index will put pressure on commodities priced in dollars, especially gold.
Meanwhile silver prices also lost momentum Wednesday as spot silver was seen trading at $36.29 at 1.00 p.m Singapore time.
