Gold fell for a second day in Asia as the dollar rallied on signs the Federal Reserve may be finished cutting interest rates and as crude oil traded below record highs, eroding the appeal of the precious metal as an inflation hedge.
Bullion for immediate delivery declined 4.75 dollar, or 0.5 per cent to 888.15 dollar an ounce, while silver was little changed at 17.10 dollar an ounce.
The US currency extended gains against the euro after Fed Chairman Ben S Bernanke said risks of a "substantial downturn" in US economic growth had diminished and Treasury Secretary Henry Paulson said in an interview with CNBC that he would "never" rule out currency intervention.
Crude oil also fell 4.4 per cent this week from its record 139.12 dollar a barrel on 6th June.
Bernanke said in a speech at a Boston Fed conference yesterday that the US central bank will resist a jump in price expectations.
Demand for gold jewelry fell to 445 metric tons in the first quarter, down from 567 tons in the same period a year ago, a World Gold Council report said.
The market was in a surplus of 139 tons during the first quarter as a result of higher physical supplies and lower demand, it said.
Source: By DDNEWS
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