The prices of gold have recorded fluctuations as investors began to reduce their holding of the precious metal backed products in the US.

The prices were also affected by a rising dollar due to concerns that the Federal Reserve might start rolling back its stimulus package this year. Spot gold prices rose 0.4 per cent to $1,242.52 an ounce after recording a fall of 0.3 per cent and were trading at $1,240.03 this morning at Singapore. The prices rose the most since July 1 as the Dollar Index fell from its highest in three years.

Gold prices have fallen 8.2 per cent since June 19, when the Chairman of the US Federal Reserve Ben S. Bernanke had indicated the central authority will reduce its $85 billion of monthly asset purchases this year and conclude the entire stimulus package by 2014 as the US economy shows signs of recovery. Gold for August delivery rose 0.3 per cent to $1,238.60 an ounce on the Comex in New York after rising 1.8 per cent in the previous day.

The Dollar Index, which measures the American currency against the currencies of six major U. S. trade partners, rose 0.2 per cent today after falling 0.3 per cent in the previous day.