Death of Bin Laden fails to ease investors' worries

The death of the world's most wanted man, Osama bin Laden, failed to tempt investors from safe-haven assets today as worries over the weakness of the US dollar lingered.

Relief at the end of a 10-year hunt for the Al-Qaeda mastermind - killed in Pakistan by US special forces over the weekend - was tempered by fears over reprisals with embassies on high alert for potential attacks.

Spot gold prices edged 0.2% lower, but remain close to record highs at $1541.90.

Martin Gilbert, chief executive of Aberdeen Asset Management which looks after more than £180 billion of investors' money, said: "It's a non-event in the investment world."

Sterling lost half a cent against the greenback to $1.658 and Brent crude eased below $125 a barrel, but the pound remains near the 18-month highs against the dollar reached last week.

Experts said the loose stance of US monetary policy was still likely to keep driving the dollar down.

CMC Markets analyst Michael Hewson said bin Laden's death was a "complete sideshow", while Currencies Direct dealing director Mark O'Sullivan added: "Economically, there is more important stuff going on. The dollar is still going lower in the short term and will remain weak until the US tackles the deficit, which it is showing no inclination to do in the near future."