Gold prices near $1600 in Asia

Gold dropped further in Asian trade Thursday as the dollar strengthened while profits taking by investors are also weighed on the yellow metal. Gold for immediate delivery was seen trading at $1602.84 an ounce at 12.30pm Singapore time while US gold for December delivery was at $1609.04 an ounce on the comex division of Nymex. Analysts said the precious yellow metal is likely to extend losses during the day as investors backing on the dollar after European efforts to cool debt crisis remained in the corridor of uncertainty. They added that a strong dollar eased gold demand as an alternative investment, and concerns that the global economy will falter drove equities and raw materials lower. Meanwhile, equity markets across Asia dropped in early trade on mounting worries about Europe''s debt problems that might hit world economy hardly. Gold witnessed violent swings this month as it had plunged to a two-month low of $1,534.49 on Monday from a lifetime high around $1,920 an ounce struck in early September. On Wednesday, prices dropped as Gold for December delivery declined $34.40, or 2.1%, to settle at $1,618.10 an ounce on the Comex division of the New York Mercantile Exchange. Silver futures for December delivery declined $1.402, or 4.4%, to $30.134 an ounce in New York.