Gold prices slip in Asia

Gold prices fell more than 1 percent to below $880 on Monday, a near 2-1/2 month low, as rising Asian stocks and dollar strength against the yen signalled reduced risk aversion among investors who hope the worst is over for the United States economy.
Gold also dropped on Friday on receding concerns about exposure to riskier assets, coupled with signs of a firmer tone in the global economy after the G20 leaders summit. "Its the whole idea of unwinding of risk aversion and people moving out of gold into riskier assets," said Darren Heathcote of Investec Australia.
Gold stood at $877.90 an ounce by 0259 GMT, down 1.6 percent from New Yorks notional close of $892.50. It fell to as low as $876.55, the lowest since January 29. Japans Nikkei stock average hit a three-month high on optimism over the US economy, which would help leading Japanese firms, which rely on exports.
The yen slid towards six-month lows against the dollar and the euro as investors risk appetite grew. The dollar also faced selling pressure, except against the yen, as warming sentiment on the US economy led investors to cut greenback holdings as a safehaven move.
Heathcote said funds started to move out of gold late last week to more attractive assets, including base metals, which are used in a wide range of industries. He said he saw support at $875. Copper soared to five-month highs on Friday on the London Metal Exchange as upbeat economic data boosted investor confidence in the global economy.
Exchange-traded funds (ETFs), which back up the securities they issue with physical commodities, are a major element of demand. The worlds largest gold-backed ETF, the SPDR Gold Trust, said its holdings were largely unchanged at 1,127.37 tonnes by April 3, a whisker down from a record 1,127.44 tonnes first reached on March 29.
In contrast, silver holdings rose. The worlds largest silver-backed exchange-traded fund, the iShares Silver Trust, said its holdings rose 119.55 tonnes or 1.4 percent from the previous day to a record 8,413.01 tonnes as of April 3. A weekly report by the US Commodity Futures Trading Commission showed non-commercial net long gold futures positions rose to 154,859 lots in the week ended March 31 from 151,927 lots a week earlier.