Gold fluctuates in Asia; Platinum declines 3%

Gold fluctuated in Asia between gains and losses as rising military tension on the Korean peninsula boosted demand.

Immediate-delivery bullion swung between a decline of 0.5 per cent and a gain of 0.3 per cent before trading little changed at $1,190.85 an ounce in Singapore. The contract for June delivery in New York, which expires on May 28, was also little changed at $1,191.40 an ounce.

Also a 0.8 per cent gain for the dollar against major currencies hammered commodities across the board, with oil down over $2 and London Metal Exchange copper two per cent lower.

LME spot gold tumbled as low as $1,184.90 an ounce before recovering slightly to stand at $1,187.10 versus Monday's closing bid of $1,190.05.

Spot platinum dropped nearly three per cent to $1,485.25 an ounce and was at $1,488 an ounce, while spot palladium fell as low as $420.88 an ounce and was last at $423.25 an ounce.

The world's largest gold-backed exchange-traded fund, the SPDR Gold Trust, saw its holdings rise 16.737 tonnes to 1,236.889 tonnes as of May 24, a fresh record high and underscoring still-strong investor appetite for the metal.