SINGAPORE (Commodity Online) : Gold prices extended losses in Asian trade Wednesday as the dollar gained more momentum against the euro.
Gold for immediate delivery was seen trading at $1167.09 an ounce at 11.30 a.m Singapore time while U.S. gold futures for June delivery were at $1,168.00 on the Comex.
The precious yellow metal gave up its safe-haven status to the dollar dropping sharply overnight in step with a broad sell-off in commodities and stocks.
Gold is being grouped with risky investments that have been sold off amid worries over Greece's aid package and the ability of other Euro zone countries to keep clear of the contagion.
Gold has failed at trend line resistance at $1,183 per ounce, and is expected to retrace towards support at $1,160.88, analysts said.
News on Tuesday that the International Monetary Fund sold 18.5 tones of gold in March versus 5.6 tones in February also acted as negative.
The euro sank to fresh one-year lows on Wednesday as a sell-off in the single currency gathered momentum, with sentiment bearish as fears about contagion in the euro zone gripped investors.
The U.S. dollar index rose 0.18 percent, on top of a 1.4 percent rise on Tuesday. With the dollar gaining more ground, investors were shying away from gold.
Silver prices dropped a further 27 cents to $17.61 an ounce. Platinum fell $13 to $1,664.50 an ounce, while palladium was $2.50 lower at $511.00.
On Tuesday, The most active gold contract for June delivery dropped $3., or 0.3 percent, to finish at $1,168.80. Spot gold ended at $1,170.65 an ounce.