SINGAPORE (Commodity Online) : Gold prices eased in Asian trade Wednesday even after reports of a tumbling euro.
Gold for immediate delivery was seen trading at $ 1213.75 an ounce at 11.00 a.m Singapore time while U.S. gold futures for June delivery was at 1213.31 an ounce e at the same time.
The euro hit a four-year low against the dollar on Wednesday after Germany's move to ban naked short-selling of some securities rattled investors. Sterling fell to its lowest in nearly 14 months.
Analysts said the precious yellow metal dropped despite a tumbling euro after attempts to revisit last week's highs failed, stirring concerns the precious metal may be ripe for a correction.
Gold struck a record of $1,248.95 an ounce on Friday on fears that euro zone austerity measures could impede, rather than aid, a recovery.
Fears of contagion from Greece's debt crisis have driven gold to a record as investors ditched the euro and bought the metal as safe haven from volatile currencies and stocks. Gold has gained around 11 percent this year.
Comex open interest rose almost 15,000 lots to an all-time high above 600,000 lots as of May 17, indicating rising volatility.
Meanwhile, holdings in the world's largest gold-backed exchange traded fund, SPDR Gold Trust, stood unchanged at a record 1,217.108 tons.
Copper for three-month delivery declined 2.8 percent to $6,505 per ton, zinc slid 3.5 percent to $1,871 per ton