LONDON (Commodity Online): The Dubai impact was visible on Friday on bullion market with the gold dropping the most since January in London.

Prices of other precious metals, crude oil and all six main industrial metals on the London Metal Exchange declined.

The market is reacting to the news on Dubai. Gold for immediate delivery dropped as much as $50.28, or 4.2 per cent, to $1,138.10 an ounce, the biggest intraday slide since January 12.

Among other precious metals for immediate delivery in London, silver declined as much as 5.3 per cent, the most in three months, to $17.68 an ounce.

Platinum dropped 1.2 per cent to $1,438 an ounce. The metal will likely outperform gold in the year ahead on improving industrial demand and higher production costs. Palladium slid as much as 4.7 percent to $353.25 an ounce, the biggest drop since June.

The dollar index gained as much as 1 per cent as Dubai World, the government investment company with $59 billion of liabilities, sought to delay repayment on debt.

Gold’s drop Friday may be an opportunity for buyers, analysts said.

Gold, up 32 per cent this year, is set for a ninth annual gain as central banks, pension funds and individual buyers seek to protect their assets from potential currency debasement and inflation. Central banks will remain net buyers in the year ahead, for the first time in more than two decades, Standard Chartered Plc said Friday in a report.

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