Gold Declines in Asia Ahead of G-7 Finance Ministers Meeting

Gold declined in Asia on speculation a Group of Seven finance ministers meeting tomorrow may try to support the dollar to stabilize the global financial system, eroding the metal's appeal as an alternative asset. The dollar rose against the Japanese yen for the first time this month after central banks in the U.S., U.K., Europe, Canada, China, and a number of Asian countries cut borrowing costs to counter the worst financial crisis since the Great Depression. Asian equities also advanced today, snapping a five-day plunge. ``The G-7 meeting might reach some solution or policy designed to get confidence back into the financial market and to support the U.S. dollar,'' Anderson Cheung, deputy managing director of precious metals at Mitsui Bussan Precious Metals (HK) Ltd., said by phone from Hong Kong. ``Gold might see some pressure ahead of the meeting.''