Tuesday, April 12, 2011

Gold falls nearly 1 pct on oil, silver off 31-year peak


SINGAPORE: Gold slipped nearly 1 per cent on Tuesday, hovering
below a record high and silver was off a 31-year peak hit in the previous
session after long-term commodity bull Goldman Sachs advised investors to
lock-in trading profits before oil and other markets reverse.

But a
weaker dollar could cushion the fall as two top U.S. Federal Reserve officials,
Janet Yellen and William Dudley, said the central bank should stick to its
super-easy monetary policy, with inflation not a threat and unemployment too
high.

Spot gold fell $12.05 an ounce to $1,454.70 an ounce by 0317 GMT.
Bullion struck a lifetime high above $1,476 an ounce on Monday on the prospect
of a weaker dollar.

"Some people may take profits and reduce positions.
Everybody knows that Goldman Sachs recommends to reduce positions. That's why
the market is a bit scared," said Dick Poon, manager of precious metals at
Heraeus in Hong Kong.

ANKIT KUMAR
PGDM - 2 sem

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