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SINGAPORE — Gold gave up some of its overnight gains yesterday as the US dollar firmed after earlier losses, with investors keeping their attention focused on the Greek debt crisis and its effect on the currency markets. Spot gold eased 0,3 percent to $1 198,80 per ounce by 3.42am GMT, after gaining 0,5 percent on Tuesday.
“Gold is closely tracking the US dollar at the moment. There isn’t any big economic data so investors are following the Greek drama,” Lee Cheong Gold Dealers chief dealer Ronald Leung said in Hong Kong.
A strong rally in stock markets was also keeping investors out of gold, Mr Leung said. Japanese shares rallied to a 15-year high yesterday on the expectation of improved corporate earnings. Gold, often seen as a safe-haven investment, tends to see a drop in demand when equities are doing well.
The dollar held firm against a basket of major currencies yesterday, after putting up a mixed performance overnight. — Reuters.
Online Reporter