Gold could fall in New York after the dollar rebounded against the euro

Gold could fall in New York after the dollar rebounded against the euro, curbing demand for the metal as an alternative investment.

The dollar rose to a two-month high against the euro as European governments gave Ireland an aid package of 85 billion euros (113 million dollars). The U.S. currency has gained as concern that military action in the Korean peninsula will intensify demand drove the dollar as a refuge. Gold, which typically moves inversely to the dollar reached a record $ 1424.30 an ounce on November 09.

A stronger dollar "are putting pressure on gold prices," said Daniel Briesemann, an analyst at Commerzbank AG in Frankfurt, in a report today. While prices may be "supported by geopolitical tensions on the Korean peninsula, which is making gold more attractive again as a safe haven," the package of aid for Ireland "could reduce the attraction a bit," he said.

Gold futures for February delivery fell $ 2.70, or 0.2 percent, to $ 1,361.60 an ounce at 8 am on the Comex in New York. The metal for immediate delivery in London was 0.2 percent, to $ 1,360.47.

Bullion rose to $ 1,360 an ounce in the morning "fix" in London, used by some mining companies to sell production, from $ 1,355 in the afternoon on November 26. The dollar fell today as much as 0.8 percent against the euro.

Ireland bailout

Ireland said it would pay an average annual interest of 5.8 percent in the package, which is broken down into 45 million euros from European governments, 22.5 billion International Monetary Fund and 17.5 million of reserves Cash in Ireland and domestic pension funds. European finance chiefs agreed that a future crisis management system does not automatically connect to the value of bond holdings.

U.S. and South Korean warships led by the aircraft carrier USS George Washington have begun to four days of exercises in the region. North Korea "will deal a merciless struggle against military attack on any act of provocation by intruding into its territorial waters," a newspaper Rodong comments made yesterday by North Korea's official Korean Central News Agency.

UBS cut its forecast gold $ 1,325 a month from $ 1,425, London-based analyst Edel Tully said in a report. the bank gold sales to India on November 26 were the most since Oct. 27, "indicating that there is plenty of residual physical demand on the system that will provide broad support on dips," he said.

Golden China margins

In China, the Shanghai Futures Exchange will increase the margins on gold, copper and aluminum after market close today as the country moves to curb speculation and curb accelerating inflation.

gold assets in exchange-traded products fell 1.91 to 2083.18 tons metric tons on Nov. 26. Holdings reached a record 2,104.65 tonnes on 14 October. Silver holdings fell to 159.99 tonnes 14,770.3 tonnes, data from four suppliers of entertainment.

Silver for March delivery in New York was little changed at $ 26,775 an ounce. It peaked at $ 29.34 30 years on November 9 and 59 percent this year.

Palladium for March delivery rose 1.1 percent to $ 686.55 an ounce. Platinum for January delivery was little changed at $ 1,644 an ounce.