Gold rebounds slightly as dollar declines

The precious metal advanced slightly as the dollar retreated against a basket of major currencies, increasing the appeal of the yellow metal as an alternative investment.

The previous session, gold shed $7.00 or 0.52% to close at $1348.87, while gold price was setin London at $1347.50 per ounce declining from $1355.50 during the AM fixing.

Spot gold is traded at $1347.75 an ounce while recording a high of $1348.55 and a low of $1343.45.

Yet, it may be subject to downside pressure as tensions in Egypt eased and improvement in US data enhanced investors to buy high-yielding assets.

In Egypt, tensions receded as Vice President Omar Sulieman sit with opposition parties' leaders and agreed on limited steps to resolve the dilemma in the country, while banks opened for the first time yesterday.

In the same context, oil declined to $88.93 a barrel from the day's opening at $89.17 as woes eased that oil supplies from Middle East would be disrupted in Suez Canal.

On the other hand, the better-than-estimated data that showed that US unemployment dropped to 9% last month from 9.4% in December encouraged investor's to buy equities, giving uplift to Asian shares today.

The dollar index, which tracks the dollar movements versus a basket of major currencies, pared three days of advance to fall from three-week high as resistance at 78.00 levels pushed the index down to a low of 77.85.

Last week, the shiny metal benefited from riots in Egypt and rise in inflation to achieve the first weekly climb in four.

Among other precious metals, platinum edged up to $1835.50 from the day's opening at $1831.70, palladium hovered around $813.70 and silver inched up to $29.15 from $29.12, as of 07:55 GMT.