SINGAPORE (Commodity Online) : Gold prices dropped nearly half a percent in Asian trade Tuesday mainly after the dollar rebounded on Euro zone worries.
Gold for immediate delivery was seen trading at $ 1190.71 an ounce at 11.30 a.m Singapore time after fell as low as $1184.90 an ounce earlier in the day.
US gold futures for June delivery was at $1190.50 an ounce at the same time on the COMEX division of the New York Mercantile Exchange.
Analysts said dollar recovery against major currencies was prompting investors to sell into the rally. The euro slipped to $1.2346 in Asian trade from around $1.2376 late in New York on Monday when it lost more than 1.5 per cent.
The dollar's new-found strength also hammered equity markets across Asia, but that did little to snap a sell off in bullion, despite gold's traditional role as an alternative buy when stocks sour
Meanwhile, the world's largest gold-backed exchange-traded fund, the SPDR Gold Trust, saw its holdings rise to 1236.889 tones as of May 24 versus 1220.152 tones previously, marking a fresh record high and underscoring a still-whetted appetite for the metal.
On Monday, gold futures ended 1.5% higher as buyers snapped bullion at prices $50 off gold's May 12 record. Gold for June delivery rose $17.90 to settle at $1,194 an ounce.