SINGAPORE (Commodity Online) : Gold prices advanced in Asian trade Wednesday despite a firming dollar as geopolitical tensions in the Korean peninsula boosted its appeal.
Gold for immediate delivery was seen trading at $1204.94 an ounce at 12.00 noon Singapore time while US gold futures for June delivery was at $1205.44 an ounce eat the same time on the COMEX division of the New York Mercantile Exchange.
The euro fell on Wednesday, slipping back towards a four-year low against the dollar on euro zone fears.
Analysts said the precious yellow metal gained on intensified safe-haven buying over European debt worries and the mounting tensions on the Korean peninsula that prompted a leap in private-sector investment in bullion.
Platinum group metals, also steadied after hefty overnight tumbles, suggesting they may have been oversold in a hasty exodus from raw materials closely aligned with industrial activity.
SPDR Gold Trust , the world's largest gold-backed exchange-traded fund, showed its holdings leapt by more than 30 tonnes to 1,267.322 tonnes as of May 25, setting a fresh record and underscoring a growing appetite for less risky investments.
SPDR holdings have been in a steady rise this month but the closest the trust came to the latest leap, was a 19.875-tonne gain on May 6. For the second straight day.
On Tuesday, gold for June delivery rose $4.00 to settle at $1,198.00 an ounce while silver for July delivery fell 21.9 cents to settle at $17.781 an ounce. July copper settled down 10.55 cents at $3.0420 a pound.