Gold Swings as SPDR Assets Post Longest Losing Streak in a Year

Gold swung between gains and losses as investors weighed whether U.S. interest rates will rise and after assets in the largest exchange-traded product backed by the metal posted the longest slump in a year.

Gold for immediate delivery rose and fell at least 0.3 percent, and was at $1,167.74 an ounce at 3:39 p.m. Singapore time from $1,164.33 yesterday, according to Bloomberg generic pricing. On Nov. 7, the metal fell to a four-year low before rallying to $1,178.82 as U.S. jobs data that trailed forecasts hurt the dollar.

Gold is heading for the first back-to-back annual retreat since 2000 as the end of the Federal Reserve’s asset-purchase program and falling oil prices diminished demand for the metal as an inflation hedge. Holdings in the SPDR Gold Trust shrank for a sixth day to a six-year low yesterday in the longest slump since November 2013. Bullion may drop to $1,120 by year-end on the dollar’s strength, according to Philip Klapwijk, managing director at Precious Metals Insights.

“As economic fundamentals diverge, so will monetary policies, which is the backdrop for continued strength in the dollar,” Yang Xi, a Hangzhou, China-based analyst at Yongan Futures Co., wrote in a note today. “As oil prices extend declines and global inflation remains low, all these combine to provide bearish forces for precious metals.”

Brent crude retreated to a four-year low in London yesterday amid a global supply glut. The Bloomberg Dollar Index, a gauge of the currency against 10 counterparts, traded near a five-year high reached last week.

Gold for December delivery added 0.3 percent to $1,166.40 an ounce on the Comex in New York, after most-active prices climbed on Nov. 7 to $1,179, the highest since Oct. 31.

Silver for immediate delivery traded at $15.7339 an ounce from $15.7244 yesterday. Spot platinum increased 0.4 percent to $1,207.88 an ounce, while palladium was little changed at $775.84 an ounce.

Before it's here, it's on the Bloomberg Terminal.