Gold Lost Following the Oil Prices

Gold prices declined in Asia as a drop in oil prices reduced the appeal of the precious metal as a hedge against inflation. Silver also fell.

Gold often moves in the same direction as oil, which traded near a seven-week low as Hurricane Dean weakened while heading toward Mexican production fields in the Bay of Campeche.

Gold for immediate delivery lost $2.35 to $654.95 an ounce and traded at $655.47 at 12:20 p.m. Singapore time.