Gold eases after rising 2pc; dollar helps

Tuesday, 7 December 2010 00:01 - - {{hitsCtrl.values.hits}}

Singapore, Reuters - Gold edged down on Monday after rising nearly two per cent in the previous session to above $1,400 an ounce, but a struggling US dollar that pushed silver to its highest since early 1980 could still spur buying from investors.

Any signs of a weaker US economy or heightened tensions between the two Koreas could also bolster gold.

South Korea started a nation-wide live-fire naval exercise on Monday, despite Pyongyang’s warnings against conducting the drills in disputed waters off the west coast of the peninsula.

‘Looking at the relatively strong rise in gold following the numbers on Friday, the market seems to be taking a bit of a breather,’ said Darren Heathcote, head of trading at Investec Australia in Sydney. ‘We might well drift through for a short time.’

Spot gold fell $2.36 an ounce to $1,411.99 by 0253 GMT, after rising as high as $1,415.36 on Friday as the dollar tumbled following disappointing jobs data in November.