Gold drops as the kill of Bin Laden news is still on the horizonPrecious gold fell for the second day as the news of the kill of al-Qaeda leader Osama Bin Laden by US forces in Pakistan raised concerns that al-Qaeda may reply by targeting one of the US embassies for instance, thereby enhancing demand on the dollar which dulled the precious metal's allure as an alternative asset.
Yesterday, markets interpreted the news positively as the world got rid of the most wanted man who was behind the September 11 attack that resulted in the kill of nearly 3,000 people, yet today the sentiment was reversed, especially amid the absence of important data from the world's leading economies.
The previous session, gold shed $20.10 or 1.28% after closing at $1544.95, while gold price was setin London at $1535.50 per ounce inclining from $1531.00 during the AM fixing.
Spot gold is trading at $1543.00 an ounce after recording a high of $1551.00 and a low of $1527.10.
The dollar's rebound today sapped demand on dollar-denominated commodities where oil slipped to a low of $112.62 a barrel from the day's starting level of $113.00.
The dollar index, which tracks the dollar movements versus a basket of major currencies, rebounded to reach a high of 73.26 compared with the day's opening of 73.02.
Among other precious metals, platinum slipped to $1857.00 from the day's opening of $1863.70, palladium edged down to $7695 from $773.70 and silver plummeted to $44.85 from $45.33, as of 08:15 GMT.