Gold price eases off earlier highs, palladium drops 1%

London (Jan 3)  Gold eased from an earlier three-and-a-half-month high on Wednesday, headed for its first day of losses in nearly three weeks as a firmer tone to the dollar pressured assets priced in the US currency.

The dollar’s late-December retreat drove gold sharply higher over the same period, leading to fear that the metal was becoming overbought.

Spot gold was down 0.3% at $1,314.03 an ounce at 10.40am GMT on Wednesday, off an earlier peak of $1,321.33, while US gold futures for February delivery were down 80c an ounce at $1,315.30.

"It’s still the dollar which is still very much in the driving seat for gold," Julius Baer  analyst said.

BusinessDay