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  • Oct 25th, 2005
  • Comments Off on Firmer US dollar pushes gold lower in Asia
Gold headed lower in Asia on Monday as the dollar firmed against the euro but dealers expected buying interest to resurface at lower levels and offer support at around $460 an ounce.

Spot gold fell to $464.90/465.40 in afternoon trade from $466.50/467.25 an ounce last quoted in New York and London's on Friday afternoon fix at $462.85 an ounce.

It had risen more than $5 in the US market on bargains hunting and safe-haven buying triggered by a bomb scare near the US Capitol building in Washington D.C.

But gold was still well below a near-18-year high of $480.25 an ounce hit on October 12. The physical sector saw little activity as investors and jewellery manufacturers tracked price movements, but gains in Tokyo gold futures helped gold resist downward pressure from a strong dollar.

The euro was lower than New York levels at around $1.1930.

The dollar gained strength on expectations of higher US interest rates. "The premiums are still the same. I don't see any adjustments yet. It's very quiet," said one dealer in Singapore, where premiums for gold bars were unchanged at between 20 and 40 US cents an ounce to the spot London price.

In Japan, the benchmark August gold contract on the Tokyo Commodity Exchange rose 17 yen per gram to 1,739 yen, tracking gains in New York's Comex market.

Other precious metals were mixed. Platinum rose to $927/931 an ounce from $925/929 late in New York. Palladium was unchanged at $208/212 an ounce. Silver fell to $7.62/7.64 an ounce from $7.64/7.67 late in New York.

Copyright Reuters, 2005


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