Gold Retreats From Five-Week High on Outlook for Stronger Dollar
Gold retreated after the biggest one-day rally in more than a year as investors weighed the outlook for a stronger dollar against a rebound in oil prices. Silver, platinum and palladium dropped.
Bullion for immediate delivery declined as much as 0.7 percent to $1,203.45 an ounce, and traded at $1,205.47 at 8:55 a.m. in Singapore, according to Bloomberg generic pricing. The metal rallied yesterday to $1,221.43, the highest level since Oct. 30, after climbing from a three-week low of $1,142.88 as some investors ended bets on lower prices.
Gold advanced 3.8 percent yesterday, the most since Sept. 2013, as crude recovered from a five-year low and the Bloomberg Dollar Spot Index fell from the highest since 2009. The gauge of the U.S. currency remains 8.3 percent higher this year amid expectations that the Federal Reserve will start to raise interest rates next year, hurting gold™s allure. Assets in the SPDR Gold Trust, the largest exchange-traded product backed by the metal, shrank 10 percent in 2014 to a six-year low.
Gold dropped for a third month in November as the Fed assessed the timing of rate rises, while other central banks added to stimulus, strengthening the dollar. Policy makers at the European Central Bank and Bank of England meet Dec. 4.