SINGAPORE (Commodity Online) : Gold extended losses in Asian trade Friday mainly on plunging equity markets in the region.
Gold for immediate delivery was seen trading at $1165.41 an ounce at 11.30 a.m Singapore time while US gold futures for June delivery was at $1171.84 an ounce. Equity markets across Asia fell Friday with Japan's benchmark Nikkei average sliding more than 3 percent and hitting a five-month low as exporters were hurt after the yen strengthened against the euro on worries about disunity among euro zone leaders on how to address the region's debt crisis.
Analysts said the precious yellow metal dropped more than one percent in Asian trade as investors sold to cover losses in other markets, especially as stocks dipped.
Meanwhile, platinum group metals also fell on worries euro zone debt crisis will sap industrial demand.
Platinum group metals platinum and palladium extended declines on worries about weakening industrial demand for these metals as Europe's debt problems are seen hurting the region's economy.
On Thursday, Palladium for June delivery fell $50.75, or 11 per cent, to settle at $408.95 an ounce. Platinum for July delivery dropped $109.90, or 6.8 per cent, to $1,495.80 an ounce.
Spot gold closed at $1,181.10 an ounce while U.S. gold futures for June delivery closed at $1,188.60 an ounce on the COMEX division of the NYMEX.
July silver dropped 40 cents to $17.715 an ounce, while July copper fell 1.5 cents to $2.9445 per pound.
Declines in gold and silver were more modest because the pair have been popular alternatives to currencies in recent weeks.