By Kim Kyoungwha
July 22 (Bloomberg) -- Gold, little changed in Asian trading, may decline as inflation concerns eased and the dollar strengthened, reducing the appeal of the precious metal as a store of value.
Bullion extended its retreat from the highest in almost six weeks as the Dollar Index, which gauges the strength of the U.S. currency against those of six major trading partners, gained for the first time in three days and U.S. Federal Reserve Chairman Ben S. Bernanke said inflation pressures are limited.
“I guess that the inflation argument is a longer term story for gold,” said Toby Hassall, a Sydney-based research analyst with Commodity Warrants Australia. “So for now the direction of the dollar will be a key factor for gold.”
Gold for immediate delivery declined as much as 0.2 percent to $946.84 an ounce and last traded little changed at $948.10 at 9:55 a.m. in Singapore. Bullion, which has climbed 7.7 percent this year, reached $954.99 on July 20, the highest since June 12.
Gold holdings in the SPDR Gold Trust, the biggest exchange-traded fund backed by bullion, decreased 2.13 metric tons to 1,092.41 tons yesterday, according to data on the company’s Web site.
Among other precious metals for immediate delivery, silver was little changed at $13.55 an ounce, platinum gained 0.2 percent to $1,177.50 an ounce and palladium slid 1 percent to to $253.50 an ounce as of 9:57 a.m. in Singapore.
To contact the reporter on this story: Kyoungwha Kim in Singapore at Kkim19@bloomberg.net
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