Gold held an advance as investors weighed a drop in the dollar against speculation that Asian demand may be waning.
Bullion for immediate delivery traded at $1,173.99 an ounce at 8:23 a.m. in Singapore from $1,174.07 on Monday, when prices climbed 0.2 percent, according to Bloomberg generic pricing. The metal fell to $1,162.88 on Friday, the lowest since March 19, after the U.S. added more jobs than expected in May.
Gold fell 0.9 percent this year while the dollar climbed 4.5 percent as investors seek to gauge when the Federal Reserve will raise borrowing costs for the first time since 2006. Higher rates drive investors to favor assets that pay interest, curbing the allure of the metal. The Bloomberg Dollar Spot Index lost 1 percent on Monday as the euro climbed 1.6 percent.
Gold coin and minted-bar sales from Australia’s Perth Mint fell to a three-year low in May, the mint said on Friday. Sales of American Eagle gold coins at the U.S. Mint, the world’s largest, dropped 27 percent in May from April.
Gold for August delivery was at $1,173.20 an ounce on the Comex from $1,173.60 on Monday, when prices climbed 0.5 percent. Silver for immediate delivery was little changed at $15.9813 an ounce. Platinum traded at $1,104.45 an ounce from $1,102.46, while palladium was little changed at $745.32 an ounce.
Source : Bloomberg