Gold advances as decline in equities spurs demand; silver gains

SINGAPORE: Gold rebounded from the biggest decline in a week as a retreat in stocks revived demand for an alternative investment. Platinum and silver advanced. Stocks fell around the world today, led by energy producers as oil dropped for a fourth day. The Bloomberg Dollar Spot Index fell for the first time in three sessions. Futures trading was 15 percent below the 100-day average for this time of day, data compiled by Bloomberg show.

"The market is rather thin at the moment," said Mark To, head of research at Wing Fung Financial, a trader and refiner in Hong Kong. Gold for immediate delivery rose 0.3 percent to $1,186.83 an ounce at 10:37 a.m. in London, according to Bloomberg generic pricing. The metal fell 1.1 percent yesterday, the most since Dec. 22. Bullion for February delivery increased 0.4 percent to $1,186.50 on the Comex in New York.

Gold is heading for a second annual loss after the dollar strengthened and investors speculated that the Federal Reserve will raise interest rates in 2015. The metal is down 1.2 percent this year and trading near the lowest level since 2010. Holdings in the SPDR Gold Trust, the largest exchange-traded product backed by bullion, held yesterday at 712.3 metric tons, a six-year low. The assets contracted 11 percent this year after shrinking 41 percent in 2013. Silver for immediate delivery climbed 0.9 percent to $15.9465 an ounce. Spot platinum rose 0.2 percent to $1,205.20 an ounce. Palladium increased 0.4 percent to $813.10 an ounce.