Gold declines on selloff by investors

Gold dropped on Thursday trading as investors sold the shiny metal to cover some of their losses in other markets, especially equities which fell tremendously since the March 11 earthquake which shook Japan.

Spot gold is currently trading around $1397.50 an ounce after recording a high of $1400.35 and a low of $1386.42.

The previous session, gold added $5.80 or 0.42% after closing at $1400.30, while gold price was setin London at $1402.5000 per ounce inclining from $1398.50 during the AM fixing.

Efforts are still ongoing to lower the radiations emitting from reactor number 4 of Fukushima Dai-Ichi power plant, yet fears of a nuclear disaster is still present.

G7 leaders will meet tomorrow to discuss the effects of the Japanese quake.

However, Japanese equities managed to pare some of the losses on hopes government attempts to solve the problem will succeed.

Silver inched down to $34.10 compared with the day's opening at $34.16, after reaching 31-year high the previous week.

Palladium and platinum also fell due to decline in demand from Japanese auto industries which accounts for 15% of the two metals on the back of the closure of some plants.

In the FOREX market, the USD/JPY witnessed strong movements during the Asian session as it is currently trading at 79.04 after recording a high of 79.73 and a low of 77.07, where the Japanese finance minister did not announce any intervention in foreign exchange market, probably till tomorrow's G7 meeting.

With regard oil prices, it rose to a high of $100.01 a barrel amid the unrest in the Middle East and North Africa, especially in Libya and Bahrain where the clashes are escalating. Meanwhile, there are mounting worries that the protests spread to Saudi Arabia, the largest crude producer in OPEC.