SINGAPORE: Gold declined in Asia on speculation that the Federal Reserve may signal at a policy meeting this week that it might put an end to interest rate cuts, and crude oil's rally to a record stalled.
Analysts said that interest in gold as an alternative asset waned as the dollar rebounded in the past week from its record low against the euro, and oil's climb to as high as $119.93 a barrel yesterday failed to trigger interest in bullion as a hedge against inflation.
Bullion for immediate delivery fell as much as $3.64, or 0.4 percent, to $889.61 an ounce and traded at $890.70 at 1:41 p.m. in Singapore. Silver was 0.5 percent down at $16.945 an ounce, while platinum was little changed at $1,969.
The U.S. currency headed for its first monthly advance versus the yen and euro since December as traders pared bets the Fed will keep reducing interest rates at a time of record oil prices and accelerating inflation.
The dollar was little changed at $1.5634 against the euro in Singapore. It was at 104.28 yen at the same time, compared with an intraday high of 104.82 yen yesterday, the highest level since February 29.
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