- Gold declined as the biggest rally in more than two weeks prompted some investors to sell the precious metal to lock in gains.
- Gold for immediate delivery dropped as much as 0.4 percent to $1,338.78 an ounce and traded at $1,340.45 at 10:37 a.m. Seoul time after yesterday climbing 1.4 percent, the biggest gain since Oct. 13. Gold has gained 2.5 percent this month and 22 percent this year, heading for a 10th annual advance, as demand grows for the metal as a protection against debasement of the dollar. December-delivery futures fell 0.3 percent to $1,340.30 an ounce on the Comex in New York.
- “Gold may continue to see some selling pressure, which will lead to a correction for the time being,” said Park Jong Beom, a trader at Tong Yang Futures Trading Co. in Seoul. “It will find some support at around $1,320 though, because the weak dollar theme will still be around in the longer term.”
The dollar was little changed, after dropping yesterday by the most in a week against a basket of six currencies, on speculation that any Federal Reserve program to buy back government assets will debase the U.S. currency. Gold has climbed 8.3 percent since Sept. 1, reaching a record $1,387.35 an ounce on Oct. 14, while the greenback has dropped 7 percent. Bullion typically moves inversely to the dollar
by sangeeth.cherian@apnnews.com
