Gold retreated lower from a five-month high as softer energy costs reduced metals appeal as a hedge against inflation. Also, the recovery in US dollar against euro, yen pressured gold prices. Slowing demand from India has also affected gold prices. In London spot market gold was offered $2 lower at $644.3 per ounce.

Gold Fields settled months of speculation about its capital needs with the announcement of plans to raise $1.2bn through a private placement of shares with institutions.

According to statistics, sales of DSF 2007 gold coupons till date are 387,487 compared to 291,000 in 2005.

Comex gold warehouse stocks were unchanged at 7,463,524 ounces.

Silver prices eased a bit perfectly in tune with declining gold prices. The metal is also witnessing liquidation pressure after peaking on Tuesday. In London spot market silver was offered at $13.29 per troy ounce, down 2 cents.

Soft tone in the copper futures in New York and on LME would continue to apply check on silvers movement.

Comex warehouse stock rose 597,554 ounces to 114,757,944 ounces.