“Gold gained for the first time in four days in London as a weaker dollar and prices near a four- month low increased investor demand.
Bullion slumped to a four-month low on Jan. 4 after minutes from the Federal Reserve showed that policy makers may end $85 billion in monthly bond purchases some time this year, boosting the U.S. Dollar Index to a six-week high. The dollar gauge, a measure against six currencies, fell for a second day today.
“The metal has recovered from recent lows amid dip-buying and a retreat in the U.S. dollar,” analysts at Mumbai-based Kotak Commodity Services Ltd. said today in a report. “However, weighing on the gold price is uncertainty about the Fed’s asset purchase program after the latest Federal Open Market Committee minutes.”
Gold for immediate delivery added 0.2 percent to $1,651 an ounce by 9:35 a.m. in London. It reached $1,625.85 on Jan. 4, the lowest since Aug. 21. Gold for February delivery was 0.3 percent higher at $1,651.10 on the Comex in New York.
Holdings in gold-backed exchange-traded products were at 2,622.3 metric tons yesterday, about 0.4 percent below the record set Dec. 20, data compiled by Bloomberg show. Prices gained for a 12th consecutive year in 2012 as central banks from the U.S. to China pledged more steps to spur economic growth…”
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