Gold falls in London

Gold fell on Monday as a drop in oil prices reduced the metal's appeal as an inflation hedge and after the failure of prices to break key targets prompted profit-taking. Gold fell as low as $657.50 and was at $658.40/658.90 an ounce by 1356 GMT.
The metal rose as high as $665.80 in Asia, against $663.70/664.70 in New York late on Friday, when it rose to $667.90 due to Middle East tensions and dollar weakness.
"The potential buyers are holding back here due to the fact that gold is not making a move over $670. Anything major would probably not happen ahead of the Easter holidays. The market is set to remain in a tight range for now," Frederic Panizzutti, metals analyst at MKS Finance, said.
"I think the dollar is going to be a prevailing factor in the next coming days. Also, geopolitical tensions are keeping gold strong," he added. The dollar eased against the euro and yen on Monday, while oil fell further below $66 a barrel, pulling back from a rally that added $10 in little over a week.
Dealers said they witnessed buying interest when gold prices fell below $658, adding that the metal was unlikely to fall sharply from current levels in the near term. "Going forward, the downside risk for gold should continue to be limited by forecasts for further dollar weakness, firmer oil prices and heightened geopolitical concerns," Barclays Capital said in a daily report.
Iran seized 15 British sailors and marines on March 23, accusing them of entering its territorial waters. The dispute has raised tensions between the West and the Islamic Republic, already high over Tehran's disputed nuclear programme.
The physical bullion sector saw profit-taking from Indonesia, but light buying emerged from India, the world's largest gold consumer, and Thailand. Gold imports into Turkey edged up by 3.6 percent to 12.6 tonnes in March from a year earlier, the Istanbul Gold Exchange said.
"While the metal has lacked upside momentum over the past few weeks, we are now moving into what is traditionally the strongest period for physical demand," said James Moore, analyst at TheBullionDesk.com, adding that a breach of $670-$672 might help gold move towards $675-$678.
In other metals, silver slipped to $13.03/13.06 an ounce from $13.38/13.41 in New York, while platinum was at $1,241.50/1,246.50 an ounce from $1,240/1,243. Palladium was up 50 cents at $352.50/357.50 an ounce.