Gold fell in Trading Forex Online as an advance in the dollar reduces demand for the precious metal as an alternative asset. Silver declined from a 30-year high.
Gold for immediate delivery lost as much as $2.50, or 0.2 percent, to $1,291.85 an ounce before trading at $1,293.60 at 12:24 p.m. in Seoul. Bullion reached an all-time high of $1,300.15 yesterday.
Immediate-delivery silver dropped as much as 0.8 percent to $21.2463 an ounce after yesterday rising to $21.6175, the highest level since October 1980.
The Dollar Index, a six-currency gauge of the greenback’s value, advanced as much as 0.2 percent after touching the lowest level yesterday since Feb. 3.
Gold for December delivery dropped 0.3 percent to $1,295 an ounce on the Comex in New York. Futures reached a record $1,301.60 on Sept. 24.
Bullion has risen 18 percent this year, heading for a 10th consecutive annual advance, spurring central banks globally to add the metal to reserves. Combined central-bank holdings expanded every quarter since the second quarter of last year, according to data from the World Gold Council.
Hedge-fund managers and other large speculators decreased their net-long position in New York gold futures in the week ended Sept. 21, according to data from Washington-based U.S. Commodity Futures Trading Commission on Sept. 24. Speculative long positions, or bets prices will rise, outnumbered short positions by 244,013 contracts on the Comex, the commission said. Net-long positions fell by 248 contracts from a week earlier.