SINGAPORE (Commodity Online) : Gold continued to fall in Asia Thursday after profit taking intensified amid a strengthening dollar.
Spot gold was seen trading at $1732.97 an ounce at 1.30 p.m Singapore time while US gold for December delivery was seen trading at $ 1744.02 an ounce on the comex divison of Nymex.
Gold futures fell faster on the Tokyo Commodity Exchange on Thursday afternoon, with the lead contract for June 2012 hitting 4,290 yen per gram at 2 p.m., down 255 yen.
Analysts attributed gold’s decline also to CME margin hike on Futures that prompted some investors to sell the metal before it loses its safe haven appeal.
The CME Group raised margin requirement on COMEX gold futures by 27 percent, the biggest hike in more than two and a half years and the second increase in the month.
They added that a better-than-estimated U.S. economic data, that boosted the dollar and cut demand for safe assets, were also affected the precious yellow metal.
The dollar index held steady on Thursday, after rising against major currencies in the previous session, asinvestors await signal on stimulus from the U.S. Federal Reserve .
Meanwhile, SPDR Gold Trust said on Wednesday its holdings fell 2.2 pct, in its biggest one-day drop in seven months.
On Wednesday, gold futures dropped 5.6% Wednesday, their biggest one-day percentage drop since March 2008 as a mild correction that started the previous day swelled to a sudden rip current of selling.
Gold for December delivery /quotes/zigman/661658 GC1Z -1.16% dropped $104 to settle at $1,757.30 an ounce on the Comex division of the New York Mercantile Exchange.
That was gold’s worst day since March 19, 2008, when the then most-active contract lost 5.8%.
The contract fell $30.60 Tuesday to end at $1,861.30 an ounce. Gold last hit a settlement record on Monday, when it finished at $1,891.90 an ounce
