London, November 29: Gold today fell USD 3.19 to USD 1,360.65 an ounce after the dollar rebounded against the euro, curbing demand for the metal as an alternative investment.
The dollar traded near a two-month high against the euro as European governments handed Ireland an USD 113 billion aid package.
The US currency has gained as concern that military action on the Korean peninsula will escalate boosted demand for the dollar as a refuge.
UBS lowered its one-month gold forecast to USD 1,325, from USD 1,425. The bank’s gold sales to India on November 26 were the most since Oct. 27, indicating that there’s much residual physical demand in the system that will provide ample support on dips.
–Agencies