Daily Gold Update

Source: Bloomberg

Tokyo— Gold declined from a two-week high, dropping for the first time in three days as the dollar climbed, eroding the appeal of the metal as an alternative investment. Bullion lost as much as 0.6 percent after gaining 2.1 percent in the previous two days. The dollar climbed after earlier touching the lowest level in two weeks against the euro. Gold typically moves inversely to the U.S. currency. �It�s a correction after prices reached a two-week high,� said Hiroyuki Kikukawa, general manager of research at Tokyo- based IDO Securities Co.

Gold for immediate delivery lost $5.60 to $1,121.20 an ounce at 2:05 p.m. in Tokyo after touching $1,128.22 yesterday, the highest level since March 19. The metal has gained 1.2 percent this week. The euro fell 0.2 percent to $1.3567 after touching $1.3591, the highest level since March 19. Trade was thin as markets in U.K. and the U.S. are closed today for the Good Friday holiday. Bullion for June delivery, the most widely held contract, closed 1 percent higher at $1,126.10 an ounce yesterday on the Comex division of the New York Mercantile Exchange. See full story.