SINGAPORE (Commodity Online) : Gold prices eased in Asian trade Tuesday after an overnight rally put the precious metal to its highest settlement in five months.
Gold for immediate delivery was seen trading at $1181.49 an ounce at 11.30 a.m Singapore time while U.S. June gold futures was at $1182.47 an ounce eat the same time.
Analysts said gains in the dollar hampered gold's rally. The greenback remained firm against a basket of six major currencies on Tuesday after rising against the euro and yen on Monday on growth in U.S. manufacturing and doubts about Greece's ability to honor a pledge for drastic wage cuts in return for an aid package.
On Monday, gold rose to its highest settlement in five months, inching toward $1200 as investors bought the metal as a safe haven on lingering concerns about eurozone debt.
Gold for June delivery gained $2.60, or 0.2 per cent, to settle at $1183.30. That's the highest settlement for a most-active contract since December 3.
Spot gold ended at $1,183.30 after hitting as high as $1187.41 an ounce during the day.
Silver for July delivery rose 20.1 cents to settle at $18.840 per fine ounce. Copper for July delivery settled down 6.0 cents at $3.2935 per pound.
Gold priced in euros, sterling and Swiss francs climbed to records. The metal advanced 5.9 per cent last month as investors purchased the metal and the dollar to hedge against financial turmoil in Europe