Gold rose from the lowest close in more than three years to pare a weekly loss that was spurred by the U.S. Federal Reserve’s decision to begin tapering stimulus. Goldman Sachs Group Inc. said that bullion’s decline isn’t over as it heads for the biggest annual drop since 1981.
The metal for delivery in February rose 0.1 percent to $1,195 an ounce by 9:34 a.m. on Comex in New York, bringing the drop this week to 3.2 percent. Futures fell 3.4 percent yesterday to $1,193.60, the lowest settlement since Aug. 3, 2010. The metal will drop to $1,050 by the end of next year, Goldman Sachs said.