Singapore: Gold fell in Asia on 30 August, on concern that a rising Japanese currency may prompt investors to reduce risk by selling assets, including the precious metal, financed with borrowed yen. Silver was little changed.
The yen climbed against the 16 most-active currencies today in a reversal of the so-called carry trade. Investors sold higher-yielding assets purchased with loans from Japan after an Australian hedge fund filed for bankruptcy protection.
Gold for immediate delivery fell $1.50, or 0.2%, to $666.10 an ounce. Prices gained $5.10 on 29 August in New York. Silver was little changed at $11.86 an ounce.
Traders said most gold traders were reluctant to hold positions now because they still worried there might be more fallout from the subprime problem.
Gold fell to a six-week low on 16 August after investors sold the precious metal to raise cash as losses widened on US subprime mortgages.